Bill > HF1700

This bill modifies Minnesota's property tax rules for agricultural entities by increasing the maximum number of shareholders, members, or partners allowed in a family farm corporation, joint farm venture, limited liability company, or partnership from 12 to 20. The change aims to provide more flexibility for family-owned agricultural businesses while maintaining the requirement that more than half of the shareholders, members, or partners must be qualifying relatives. The bill preserves existing provisions that allow these agricultural entities to receive homestead classification for properties where shareholders or partners are actively engaged in farming, even if the legal title is held by the entity rather than the individual. The provisions cover scenarios such as homestead properties owned by the agricultural entity, residences on agricultural land occupied by shareholders, and agricultural property owned by a member and leased to the entity. The bill will take effect for homestead applications in 2025 and subsequent years, potentially allowing more family members or investors to participate in agricultural business structures while maintaining the core intent of supporting family-owned farming operations.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1700&ssn=0&y=2025