Bill > SF755

This bill modifies Minnesota's homestead property tax classification rules for agricultural entities by increasing the maximum number of shareholders, members, or partners allowed in a family farm corporation, joint family farm venture, limited liability company, or partnership from 12 to 18. The change allows these agricultural entities to maintain their favorable property tax classification (class 1b or class 2a) even with up to 18 shareholders, provided that more than half of the shareholders are qualifying relatives as defined in existing law. The bill ensures that agricultural entities can still receive homestead property tax benefits if a shareholder or partner resides on and actively farms the land, regardless of whether the entity owns the land or is operating it. The new provision will apply to homestead applications starting in 2025, potentially giving more flexibility to family-owned and operated agricultural businesses in managing their corporate structures while maintaining tax advantages.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0755&ssn=0&y=2025