This bill amends Minnesota Statutes 2024, section 273.124, subdivision 8, to increase the allowable number of shareholders, members, or partners in family farm corporations, joint family farm ventures, limited liability companies, or partnerships from 12 to 20. This change aims to enhance the classification of agricultural property owned by these entities, allowing for more individuals to be involved while still qualifying for homestead treatment. The bill outlines the conditions under which these entities can receive class 1b or class 2a property assessments, ensuring that the individuals residing on the land are actively engaged in farming.

Additionally, the bill specifies that agricultural property leased to these entities by a member, partner, or shareholder can also qualify for class 1b or class 2a classification, provided the owner resides on the property and is engaged in farming. It further clarifies the eligibility criteria for nonhomestead agricultural property located near a homestead owned by a shareholder, member, or partner. The effective date for these changes is set for homestead applications in 2025 and thereafter.

Statutes affected:
Introduction: 273.124