Bill > HF2539

This bill modifies Minnesota's property tax laws regarding agricultural property owned by family farm corporations, joint family farm ventures, limited liability companies, and partnerships. The key change removes the previous restriction that limited such entities to 12 shareholders and replaces it with a requirement that all shareholders, members, or partners be related by blood or marriage. This means these agricultural entities can now have more shareholders, provided they are family members. The bill maintains existing provisions that allow these agricultural entities to receive preferential property tax treatment, such as homestead classification, when the property is occupied by and actively farmed by shareholders or members who are residing on the land. The bill also preserves other existing provisions about leasing and classification of agricultural property, including allowing certain non-homestead agricultural properties to receive homestead classification rates under specific conditions. The changes will be effective for homestead applications starting in 2025, potentially providing more flexibility for family-owned agricultural businesses to structure their ownership and operations while maintaining tax benefits.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2539&ssn=0&y=2025