Bill > HF1423

This bill amends Minnesota's property tax law to increase the maximum number of shareholders, members, or partners allowed in family farm corporations, joint farm ventures, limited liability companies (LLCs), or partnerships while still qualifying for special agricultural homestead property tax classification. Currently, these agricultural entities are limited to 12 shareholders, and the bill would raise this limit to 18 shareholders. The bill maintains existing requirements that more than half of the shareholders must be qualifying relatives (as defined in state law), and allows these entities to receive preferential property tax assessment for homesteads occupied by shareholders who are actively engaged in farming. The special classification applies even if the legal property title is in the entity's name rather than an individual's name, as long as the occupant is a shareholder actively farming the land. The changes will be effective for homestead applications in 2025 and subsequent years, potentially providing more flexibility for family-owned and operated agricultural businesses to maintain their corporate structure while retaining agricultural property tax benefits.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1423&ssn=0&y=2025