Bill > SF2665

This bill modifies Minnesota's agricultural property tax classification rules by removing previous restrictions on the number and relationship of shareholders in family farm corporations, joint farm ventures, limited liability companies, and partnerships. Specifically, the bill eliminates the previous limit of 12 shareholders and replaces it with a provision that all shareholders, members, or partners must be related by blood or marriage. The bill allows agricultural property owned by these entities to receive homestead tax classification benefits if certain conditions are met, such as shareholders or partners residing on and actively farming the land. The changes aim to provide more flexibility for family-owned agricultural businesses in how they structure their ownership while maintaining the intent of preserving family farm operations. The new provisions will be effective for homestead applications starting in 2025, potentially allowing more family farm entities to qualify for preferential property tax treatment under Minnesota law. Key terms like "family farm corporation" and "joint family farm venture" are defined according to existing state statutes to ensure clarity and consistent interpretation.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2665&ssn=0&y=2025