| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; property; expanding qualified relatives for special agricultural |
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| 3 | 3 | | 1.3 homestead; amending Minnesota Statutes 2024, section 273.124, subdivision 14. |
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| 4 | 4 | | 1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 5 | 5 | | 1.5 Section 1. Minnesota Statutes 2024, section 273.124, subdivision 14, is amended to read: |
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| 6 | 6 | | 1.6 Subd. 14.Agricultural homesteads; special provisions.(a) Real estate of less than ten |
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| 7 | 7 | | 1.7acres that is the homestead of its owner must be classified as class 2a under section 273.13, |
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| 8 | 8 | | 1.8subdivision 23, paragraph (a), if: |
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| 9 | 9 | | 1.9 (1) the parcel on which the house is located is contiguous on at least two sides to (i) |
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| 10 | 10 | | 1.10agricultural land, (ii) land owned or administered by the United States Fish and Wildlife |
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| 11 | 11 | | 1.11Service, or (iii) land administered by the Department of Natural Resources on which in lieu |
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| 12 | 12 | | 1.12taxes are paid under sections 477A.11 to 477A.14 or section 477A.17; |
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| 13 | 13 | | 1.13 (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 |
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| 14 | 14 | | 1.14acres; |
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| 15 | 15 | | 1.15 (3) the noncontiguous land is located not farther than four townships or cities, or a |
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| 16 | 16 | | 1.16combination of townships or cities from the homestead; and |
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| 17 | 17 | | 1.17 (4) the agricultural use value of the noncontiguous land and farm buildings is equal to |
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| 18 | 18 | | 1.18at least 50 percent of the market value of the house, garage, and one acre of land. |
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| 19 | 19 | | 1.19 Homesteads initially classified as class 2a under the provisions of this paragraph shall |
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| 20 | 20 | | 1.20remain classified as class 2a, irrespective of subsequent changes in the use of adjoining |
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| 21 | 21 | | 1.21properties, as long as the homestead remains under the same ownership, the owner owns a |
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| 22 | 22 | | 1.22noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | REVISOR MS/VJ 25-0026111/14/24 |
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| 25 | 25 | | State of Minnesota |
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| 26 | 26 | | This Document can be made available |
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| 27 | 27 | | in alternative formats upon request |
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| 28 | 28 | | HOUSE OF REPRESENTATIVES |
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| 29 | 29 | | H. F. No. 1409 |
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| 30 | 30 | | NINETY-FOURTH SESSION 2.1value qualifies under clause (4). Homestead classification under this paragraph is limited |
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| 31 | 31 | | 2.2to property that qualified under this paragraph for the 1998 assessment. |
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| 32 | 32 | | 2.3 (b)(i) Agricultural property shall be classified as the owner's homestead, to the same |
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| 33 | 33 | | 2.4extent as other agricultural homestead property, if all of the following criteria are met: |
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| 34 | 34 | | 2.5 (1) the agricultural property consists of at least 40 acres including undivided government |
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| 35 | 35 | | 2.6lots and correctional 40's; |
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| 36 | 36 | | 2.7 (2) the owner, the owner's spouse, or a grandparent, grandchild, child, stepchild, sibling, |
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| 37 | 37 | | 2.8or uncle, aunt, nephew, niece, parent, or stepparent of the owner or of the owner's spouse, |
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| 38 | 38 | | 2.9is actively farming the agricultural property, either on the person's own behalf as an individual |
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| 39 | 39 | | 2.10or on behalf of a partnership operating a family farm, family farm corporation, joint family |
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| 40 | 40 | | 2.11farm venture, or limited liability company of which the person is a partner, shareholder, or |
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| 41 | 41 | | 2.12member; |
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| 42 | 42 | | 2.13 (3) both the owner of the agricultural property and the person who is actively farming |
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| 43 | 43 | | 2.14the agricultural property under clause (2), are Minnesota residents; |
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| 44 | 44 | | 2.15 (4) neither the owner nor the spouse of the owner claims another agricultural homestead |
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| 45 | 45 | | 2.16in Minnesota; and |
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| 46 | 46 | | 2.17 (5) neither the owner nor the person actively farming the agricultural property lives |
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| 47 | 47 | | 2.18farther than four townships or cities, or a combination of four townships or cities, from the |
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| 48 | 48 | | 2.19agricultural property, except that if the owner or the owner's spouse is required to live in |
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| 49 | 49 | | 2.20employer-provided housing, the owner or owner's spouse, whichever is actively farming |
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| 50 | 50 | | 2.21the agricultural property, may live more than four townships or cities, or combination of |
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| 51 | 51 | | 2.22four townships or cities from the agricultural property. |
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| 52 | 52 | | 2.23 The relationship under this paragraph may be either by blood or marriage. |
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| 53 | 53 | | 2.24 (ii) Property containing the residence of an owner who owns qualified property under |
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| 54 | 54 | | 2.25clause (i) shall be classified as part of the owner's agricultural homestead, if that property |
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| 55 | 55 | | 2.26is also used for noncommercial storage or drying of agricultural crops. |
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| 56 | 56 | | 2.27 (iii) As used in this paragraph, "agricultural property" means class 2a property and any |
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| 57 | 57 | | 2.28class 2b property that is contiguous to and under the same ownership as the class 2a property. |
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| 58 | 58 | | 2.29 (c) Noncontiguous land shall be included as part of a homestead under section 273.13, |
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| 59 | 59 | | 2.30subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached |
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| 60 | 60 | | 2.31land is located in the same township or city, or not farther than four townships or cities or |
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| 61 | 61 | | 2.32combination thereof from the homestead. Any taxpayer of these noncontiguous lands must |
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| 62 | 62 | | 2.33notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, |
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| 63 | 63 | | 2Section 1. |
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| 64 | 64 | | REVISOR MS/VJ 25-0026111/14/24 3.1and, if the homestead is located in another county, the taxpayer must also notify the assessor |
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| 65 | 65 | | 3.2of the other county. |
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| 66 | 66 | | 3.3 (d) Agricultural land used for purposes of a homestead and actively farmed by a person |
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| 67 | 67 | | 3.4holding a vested remainder interest in it must be classified as a homestead under section |
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| 68 | 68 | | 3.5273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other |
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| 69 | 69 | | 3.6dwellings on the land used for purposes of a homestead by persons holding vested remainder |
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| 70 | 70 | | 3.7interests who are actively engaged in farming the property, and up to one acre of the land |
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| 71 | 71 | | 3.8surrounding each homestead and reasonably necessary for the use of the dwelling as a home, |
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| 72 | 72 | | 3.9must also be assessed class 2a. |
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| 73 | 73 | | 3.10 (e) Agricultural land and buildings that were class 2a homestead property under section |
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| 74 | 74 | | 3.11273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as |
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| 75 | 75 | | 3.12agricultural homesteads for subsequent assessments if: |
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| 76 | 76 | | 3.13 (1) the property owner abandoned the homestead dwelling located on the agricultural |
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| 77 | 77 | | 3.14homestead as a result of the April 1997 floods; |
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| 78 | 78 | | 3.15 (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or |
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| 79 | 79 | | 3.16Wilkin; |
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| 80 | 80 | | 3.17 (3) the agricultural land and buildings remain under the same ownership for the current |
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| 81 | 81 | | 3.18assessment year as existed for the 1997 assessment year and continue to be used for |
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| 82 | 82 | | 3.19agricultural purposes; |
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| 83 | 83 | | 3.20 (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles |
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| 84 | 84 | | 3.21of one of the parcels of agricultural land that is owned by the taxpayer; and |
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| 85 | 85 | | 3.22 (5) the owner notifies the county assessor that the relocation was due to the 1997 floods, |
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| 86 | 86 | | 3.23and the owner furnishes the assessor any information deemed necessary by the assessor in |
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| 87 | 87 | | 3.24verifying the change in dwelling. Further notifications to the assessor are not required if the |
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| 88 | 88 | | 3.25property continues to meet all the requirements in this paragraph and any dwellings on the |
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| 89 | 89 | | 3.26agricultural land remain uninhabited. |
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| 90 | 90 | | 3.27 (f) Agricultural land and buildings that were class 2a homestead property under section |
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| 91 | 91 | | 3.28273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified |
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| 92 | 92 | | 3.29agricultural homesteads for subsequent assessments if: |
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| 93 | 93 | | 3.30 (1) the property owner abandoned the homestead dwelling located on the agricultural |
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| 94 | 94 | | 3.31homestead as a result of damage caused by a March 29, 1998, tornado; |
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| 95 | 95 | | 3.32 (2) the property is located in the county of Blue Earth, Brown, Cottonwood, Le Sueur, |
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| 96 | 96 | | 3.33Nicollet, Nobles, or Rice; |
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| 97 | 97 | | 3Section 1. |
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| 98 | 98 | | REVISOR MS/VJ 25-0026111/14/24 4.1 (3) the agricultural land and buildings remain under the same ownership for the current |
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| 99 | 99 | | 4.2assessment year as existed for the 1998 assessment year; |
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| 100 | 100 | | 4.3 (4) the dwelling occupied by the owner is located in this state and is within 50 miles of |
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| 101 | 101 | | 4.4one of the parcels of agricultural land that is owned by the taxpayer; and |
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| 102 | 102 | | 4.5 (5) the owner notifies the county assessor that the relocation was due to a March 29, |
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| 103 | 103 | | 4.61998, tornado, and the owner furnishes the assessor any information deemed necessary by |
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| 104 | 104 | | 4.7the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the |
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| 105 | 105 | | 4.8owner must notify the assessor by December 1, 1998. Further notifications to the assessor |
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| 106 | 106 | | 4.9are not required if the property continues to meet all the requirements in this paragraph and |
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| 107 | 107 | | 4.10any dwellings on the agricultural land remain uninhabited. |
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| 108 | 108 | | 4.11 (g) Agricultural property of a family farm corporation, joint family farm venture, family |
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| 109 | 109 | | 4.12farm limited liability company, or partnership operating a family farm as described under |
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| 110 | 110 | | 4.13subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead |
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| 111 | 111 | | 4.14property, if all of the following criteria are met: |
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| 112 | 112 | | 4.15 (1) the property consists of at least 40 acres including undivided government lots and |
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| 113 | 113 | | 4.16correctional 40's; |
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| 114 | 114 | | 4.17 (2) a shareholder, member, or partner of that entity is actively farming the agricultural |
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| 115 | 115 | | 4.18property; |
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| 116 | 116 | | 4.19 (3) that shareholder, member, or partner who is actively farming the agricultural property |
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| 117 | 117 | | 4.20is a Minnesota resident; |
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| 118 | 118 | | 4.21 (4) neither that shareholder, member, or partner, nor the spouse of that shareholder, |
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| 119 | 119 | | 4.22member, or partner claims another agricultural homestead in Minnesota; and |
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| 120 | 120 | | 4.23 (5) that shareholder, member, or partner does not live farther than four townships or |
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| 121 | 121 | | 4.24cities, or a combination of four townships or cities, from the agricultural property. |
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| 122 | 122 | | 4.25 Homestead treatment applies under this paragraph even if: |
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| 123 | 123 | | 4.26 (i) the shareholder, member, or partner of that entity is actively farming the agricultural |
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| 124 | 124 | | 4.27property on the shareholder's, member's, or partner's own behalf; or |
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| 125 | 125 | | 4.28 (ii) the family farm is operated by a family farm corporation, joint family farm venture, |
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| 126 | 126 | | 4.29partnership, or limited liability company other than the family farm corporation, joint family |
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| 127 | 127 | | 4.30farm venture, partnership, or limited liability company that owns the land, provided that: |
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| 128 | 128 | | 4.31 (A) the shareholder, member, or partner of the family farm corporation, joint family |
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| 129 | 129 | | 4.32farm venture, partnership, or limited liability company that owns the land who is actively |
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| 130 | 130 | | 4Section 1. |
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| 131 | 131 | | REVISOR MS/VJ 25-0026111/14/24 5.1farming the land is a shareholder, member, or partner of the family farm corporation, joint |
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| 132 | 132 | | 5.2family farm venture, partnership, or limited liability company that is operating the farm; |
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| 133 | 133 | | 5.3and |
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| 134 | 134 | | 5.4 (B) more than half of the shareholders, members, or partners of each family farm |
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| 135 | 135 | | 5.5corporation, joint family farm venture, partnership, or limited liability company are persons |
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| 136 | 136 | | 5.6or spouses of persons who are a qualifying relative under section 273.124, subdivision 1, |
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| 137 | 137 | | 5.7paragraphs (c) and (d). |
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| 138 | 138 | | 5.8 Homestead treatment applies under this paragraph for property leased to a family farm |
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| 139 | 139 | | 5.9corporation, joint farm venture, limited liability company, or partnership operating a family |
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| 140 | 140 | | 5.10farm if legal title to the property is in the name of an individual who is a member, shareholder, |
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| 141 | 141 | | 5.11or partner in the entity. |
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| 142 | 142 | | 5.12 (h) To be eligible for the special agricultural homestead under this subdivision, an initial |
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| 143 | 143 | | 5.13full application must be submitted to the county assessor where the property is located. |
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| 144 | 144 | | 5.14Owners and the persons who are actively farming the property shall be required to complete |
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| 145 | 145 | | 5.15only a one-page abbreviated version of the application in each subsequent year provided |
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| 146 | 146 | | 5.16that none of the following items have changed since the initial application: |
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| 147 | 147 | | 5.17 (1) the day-to-day operation, administration, and financial risks remain the same; |
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| 148 | 148 | | 5.18 (2) the owners and the persons actively farming the property continue to live within the |
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| 149 | 149 | | 5.19four townships or city criteria and are Minnesota residents; |
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| 150 | 150 | | 5.20 (3) the same operator of the agricultural property is listed with the Farm Service Agency; |
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| 151 | 151 | | 5.21 (4) a Schedule F or equivalent income tax form was filed for the most recent year; |
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| 152 | 152 | | 5.22 (5) the property's acreage is unchanged; and |
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| 153 | 153 | | 5.23 (6) none of the property's acres have been enrolled in a federal or state farm program |
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| 154 | 154 | | 5.24since the initial application. |
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| 155 | 155 | | 5.25 The owners and any persons who are actively farming the property must include the |
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| 156 | 156 | | 5.26appropriate Social Security numbers or individual taxpayer identification numbers, and sign |
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| 157 | 157 | | 5.27and date the application. If any of the specified information has changed since the full |
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| 158 | 158 | | 5.28application was filed, the owner must notify the assessor, and must complete a new |
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| 159 | 159 | | 5.29application to determine if the property continues to qualify for the special agricultural |
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| 160 | 160 | | 5.30homestead. The commissioner of revenue shall prepare a standard reapplication form for |
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| 161 | 161 | | 5.31use by the assessors. |
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| 162 | 162 | | 5Section 1. |
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| 163 | 163 | | REVISOR MS/VJ 25-0026111/14/24 6.1 (i) Agricultural land and buildings that were class 2a homestead property under section |
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| 164 | 164 | | 6.2273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified |
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| 165 | 165 | | 6.3agricultural homesteads for subsequent assessments if: |
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| 166 | 166 | | 6.4 (1) the property owner abandoned the homestead dwelling located on the agricultural |
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| 167 | 167 | | 6.5homestead as a result of damage caused by the August 2007 floods; |
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| 168 | 168 | | 6.6 (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele, |
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| 169 | 169 | | 6.7Wabasha, or Winona; |
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| 170 | 170 | | 6.8 (3) the agricultural land and buildings remain under the same ownership for the current |
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| 171 | 171 | | 6.9assessment year as existed for the 2007 assessment year; |
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| 172 | 172 | | 6.10 (4) the dwelling occupied by the owner is located in this state and is within 50 miles of |
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| 173 | 173 | | 6.11one of the parcels of agricultural land that is owned by the taxpayer; and |
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| 174 | 174 | | 6.12 (5) the owner notifies the county assessor that the relocation was due to the August 2007 |
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| 175 | 175 | | 6.13floods, and the owner furnishes the assessor any information deemed necessary by the |
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| 176 | 176 | | 6.14assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the |
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| 177 | 177 | | 6.15owner must notify the assessor by December 1, 2008. Further notifications to the assessor |
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| 178 | 178 | | 6.16are not required if the property continues to meet all the requirements in this paragraph and |
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| 179 | 179 | | 6.17any dwellings on the agricultural land remain uninhabited. |
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| 180 | 180 | | 6.18 (j) Agricultural land and buildings that were class 2a homestead property under section |
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| 181 | 181 | | 6.19273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as |
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| 182 | 182 | | 6.20agricultural homesteads for subsequent assessments if: |
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| 183 | 183 | | 6.21 (1) the property owner abandoned the homestead dwelling located on the agricultural |
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| 184 | 184 | | 6.22homestead as a result of the March 2009 floods; |
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| 185 | 185 | | 6.23 (2) the property is located in the county of Marshall; |
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| 186 | 186 | | 6.24 (3) the agricultural land and buildings remain under the same ownership for the current |
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| 187 | 187 | | 6.25assessment year as existed for the 2008 assessment year and continue to be used for |
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| 188 | 188 | | 6.26agricultural purposes; |
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| 189 | 189 | | 6.27 (4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles |
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| 190 | 190 | | 6.28of one of the parcels of agricultural land that is owned by the taxpayer; and |
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| 191 | 191 | | 6.29 (5) the owner notifies the county assessor that the relocation was due to the 2009 floods, |
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| 192 | 192 | | 6.30and the owner furnishes the assessor any information deemed necessary by the assessor in |
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| 193 | 193 | | 6.31verifying the change in dwelling. Further notifications to the assessor are not required if the |
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| 194 | 194 | | 6Section 1. |
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| 195 | 195 | | REVISOR MS/VJ 25-0026111/14/24 7.1property continues to meet all the requirements in this paragraph and any dwellings on the |
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| 196 | 196 | | 7.2agricultural land remain uninhabited. |
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| 197 | 197 | | 7.3 EFFECTIVE DATE.This section is effective beginning with assessment year 2026. |
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| 198 | 198 | | 7Section 1. |
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| 199 | 199 | | REVISOR MS/VJ 25-0026111/14/24 |
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