1.1 A bill for an act
1.2 relating to taxation; property; expanding qualified relatives for special agricultural
1.3 homestead; amending Minnesota Statutes 2024, section 273.124, subdivision 14.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2024, section 273.124, subdivision 14, is amended to read:
1.6 Subd. 14.Agricultural homesteads; special provisions.(a) Real estate of less than ten
1.7acres that is the homestead of its owner must be classified as class 2a under section 273.13,
1.8subdivision 23, paragraph (a), if:
1.9 (1) the parcel on which the house is located is contiguous on at least two sides to (i)
1.10agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
1.11Service, or (iii) land administered by the Department of Natural Resources on which in lieu
1.12taxes are paid under sections 477A.11 to 477A.14 or section 477A.17;
1.13 (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
1.14acres;
1.15 (3) the noncontiguous land is located not farther than four townships or cities, or a
1.16combination of townships or cities from the homestead; and
1.17 (4) the agricultural use value of the noncontiguous land and farm buildings is equal to
1.18at least 50 percent of the market value of the house, garage, and one acre of land.
1.19 Homesteads initially classified as class 2a under the provisions of this paragraph shall
1.20remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
1.21properties, as long as the homestead remains under the same ownership, the owner owns a
1.22noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
1Section 1.
REVISOR MS/VJ 25-0026111/14/24
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1409
NINETY-FOURTH SESSION 2.1value qualifies under clause (4). Homestead classification under this paragraph is limited
2.2to property that qualified under this paragraph for the 1998 assessment.
2.3 (b)(i) Agricultural property shall be classified as the owner's homestead, to the same
2.4extent as other agricultural homestead property, if all of the following criteria are met:
2.5 (1) the agricultural property consists of at least 40 acres including undivided government
2.6lots and correctional 40's;
2.7 (2) the owner, the owner's spouse, or a grandparent, grandchild, child, stepchild, sibling,
2.8or uncle, aunt, nephew, niece, parent, or stepparent of the owner or of the owner's spouse,
2.9is actively farming the agricultural property, either on the person's own behalf as an individual
2.10or on behalf of a partnership operating a family farm, family farm corporation, joint family
2.11farm venture, or limited liability company of which the person is a partner, shareholder, or
2.12member;
2.13 (3) both the owner of the agricultural property and the person who is actively farming
2.14the agricultural property under clause (2), are Minnesota residents;
2.15 (4) neither the owner nor the spouse of the owner claims another agricultural homestead
2.16in Minnesota; and
2.17 (5) neither the owner nor the person actively farming the agricultural property lives
2.18farther than four townships or cities, or a combination of four townships or cities, from the
2.19agricultural property, except that if the owner or the owner's spouse is required to live in
2.20employer-provided housing, the owner or owner's spouse, whichever is actively farming
2.21the agricultural property, may live more than four townships or cities, or combination of
2.22four townships or cities from the agricultural property.
2.23 The relationship under this paragraph may be either by blood or marriage.
2.24 (ii) Property containing the residence of an owner who owns qualified property under
2.25clause (i) shall be classified as part of the owner's agricultural homestead, if that property
2.26is also used for noncommercial storage or drying of agricultural crops.
2.27 (iii) As used in this paragraph, "agricultural property" means class 2a property and any
2.28class 2b property that is contiguous to and under the same ownership as the class 2a property.
2.29 (c) Noncontiguous land shall be included as part of a homestead under section 273.13,
2.30subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached
2.31land is located in the same township or city, or not farther than four townships or cities or
2.32combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
2.33notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
2Section 1.
REVISOR MS/VJ 25-0026111/14/24 3.1and, if the homestead is located in another county, the taxpayer must also notify the assessor
3.2of the other county.
3.3 (d) Agricultural land used for purposes of a homestead and actively farmed by a person
3.4holding a vested remainder interest in it must be classified as a homestead under section
3.5273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
3.6dwellings on the land used for purposes of a homestead by persons holding vested remainder
3.7interests who are actively engaged in farming the property, and up to one acre of the land
3.8surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
3.9must also be assessed class 2a.
3.10 (e) Agricultural land and buildings that were class 2a homestead property under section
3.11273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
3.12agricultural homesteads for subsequent assessments if:
3.13 (1) the property owner abandoned the homestead dwelling located on the agricultural
3.14homestead as a result of the April 1997 floods;
3.15 (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
3.16Wilkin;
3.17 (3) the agricultural land and buildings remain under the same ownership for the current
3.18assessment year as existed for the 1997 assessment year and continue to be used for
3.19agricultural purposes;
3.20 (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
3.21of one of the parcels of agricultural land that is owned by the taxpayer; and
3.22 (5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
3.23and the owner furnishes the assessor any information deemed necessary by the assessor in
3.24verifying the change in dwelling. Further notifications to the assessor are not required if the
3.25property continues to meet all the requirements in this paragraph and any dwellings on the
3.26agricultural land remain uninhabited.
3.27 (f) Agricultural land and buildings that were class 2a homestead property under section
3.28273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
3.29agricultural homesteads for subsequent assessments if:
3.30 (1) the property owner abandoned the homestead dwelling located on the agricultural
3.31homestead as a result of damage caused by a March 29, 1998, tornado;
3.32 (2) the property is located in the county of Blue Earth, Brown, Cottonwood, Le Sueur,
3.33Nicollet, Nobles, or Rice;
3Section 1.
REVISOR MS/VJ 25-0026111/14/24 4.1 (3) the agricultural land and buildings remain under the same ownership for the current
4.2assessment year as existed for the 1998 assessment year;
4.3 (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
4.4one of the parcels of agricultural land that is owned by the taxpayer; and
4.5 (5) the owner notifies the county assessor that the relocation was due to a March 29,
4.61998, tornado, and the owner furnishes the assessor any information deemed necessary by
4.7the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
4.8owner must notify the assessor by December 1, 1998. Further notifications to the assessor
4.9are not required if the property continues to meet all the requirements in this paragraph and
4.10any dwellings on the agricultural land remain uninhabited.
4.11 (g) Agricultural property of a family farm corporation, joint family farm venture, family
4.12farm limited liability company, or partnership operating a family farm as described under
4.13subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
4.14property, if all of the following criteria are met:
4.15 (1) the property consists of at least 40 acres including undivided government lots and
4.16correctional 40's;
4.17 (2) a shareholder, member, or partner of that entity is actively farming the agricultural
4.18property;
4.19 (3) that shareholder, member, or partner who is actively farming the agricultural property
4.20is a Minnesota resident;
4.21 (4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
4.22member, or partner claims another agricultural homestead in Minnesota; and
4.23 (5) that shareholder, member, or partner does not live farther than four townships or
4.24cities, or a combination of four townships or cities, from the agricultural property.
4.25 Homestead treatment applies under this paragraph even if:
4.26 (i) the shareholder, member, or partner of that entity is actively farming the agricultural
4.27property on the shareholder's, member's, or partner's own behalf; or
4.28 (ii) the family farm is operated by a family farm corporation, joint family farm venture,
4.29partnership, or limited liability company other than the family farm corporation, joint family
4.30farm venture, partnership, or limited liability company that owns the land, provided that:
4.31 (A) the shareholder, member, or partner of the family farm corporation, joint family
4.32farm venture, partnership, or limited liability company that owns the land who is actively
4Section 1.
REVISOR MS/VJ 25-0026111/14/24 5.1farming the land is a shareholder, member, or partner of the family farm corporation, joint
5.2family farm venture, partnership, or limited liability company that is operating the farm;
5.3and
5.4 (B) more than half of the shareholders, members, or partners of each family farm
5.5corporation, joint family farm venture, partnership, or limited liability company are persons
5.6or spouses of persons who are a qualifying relative under section 273.124, subdivision 1,
5.7paragraphs (c) and (d).
5.8 Homestead treatment applies under this paragraph for property leased to a family farm
5.9corporation, joint farm venture, limited liability company, or partnership operating a family
5.10farm if legal title to the property is in the name of an individual who is a member, shareholder,
5.11or partner in the entity.
5.12 (h) To be eligible for the special agricultural homestead under this subdivision, an initial
5.13full application must be submitted to the county assessor where the property is located.
5.14Owners and the persons who are actively farming the property shall be required to complete
5.15only a one-page abbreviated version of the application in each subsequent year provided
5.16that none of the following items have changed since the initial application:
5.17 (1) the day-to-day operation, administration, and financial risks remain the same;
5.18 (2) the owners and the persons actively farming the property continue to live within the
5.19four townships or city criteria and are Minnesota residents;
5.20 (3) the same operator of the agricultural property is listed with the Farm Service Agency;
5.21 (4) a Schedule F or equivalent income tax form was filed for the most recent year;
5.22 (5) the property's acreage is unchanged; and
5.23 (6) none of the property's acres have been enrolled in a federal or state farm program
5.24since the initial application.
5.25 The owners and any persons who are actively farming the property must include the
5.26appropriate Social Security numbers or individual taxpayer identification numbers, and sign
5.27and date the application. If any of the specified information has changed since the full
5.28application was filed, the owner must notify the assessor, and must complete a new
5.29application to determine if the property continues to qualify for the special agricultural
5.30homestead. The commissioner of revenue shall prepare a standard reapplication form for
5.31use by the assessors.
5Section 1.
REVISOR MS/VJ 25-0026111/14/24 6.1 (i) Agricultural land and buildings that were class 2a homestead property under section
6.2273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
6.3agricultural homesteads for subsequent assessments if:
6.4 (1) the property owner abandoned the homestead dwelling located on the agricultural
6.5homestead as a result of damage caused by the August 2007 floods;
6.6 (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
6.7Wabasha, or Winona;
6.8 (3) the agricultural land and buildings remain under the same ownership for the current
6.9assessment year as existed for the 2007 assessment year;
6.10 (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
6.11one of the parcels of agricultural land that is owned by the taxpayer; and
6.12 (5) the owner notifies the county assessor that the relocation was due to the August 2007
6.13floods, and the owner furnishes the assessor any information deemed necessary by the
6.14assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
6.15owner must notify the assessor by December 1, 2008. Further notifications to the assessor
6.16are not required if the property continues to meet all the requirements in this paragraph and
6.17any dwellings on the agricultural land remain uninhabited.
6.18 (j) Agricultural land and buildings that were class 2a homestead property under section
6.19273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
6.20agricultural homesteads for subsequent assessments if:
6.21 (1) the property owner abandoned the homestead dwelling located on the agricultural
6.22homestead as a result of the March 2009 floods;
6.23 (2) the property is located in the county of Marshall;
6.24 (3) the agricultural land and buildings remain under the same ownership for the current
6.25assessment year as existed for the 2008 assessment year and continue to be used for
6.26agricultural purposes;
6.27 (4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
6.28of one of the parcels of agricultural land that is owned by the taxpayer; and
6.29 (5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
6.30and the owner furnishes the assessor any information deemed necessary by the assessor in
6.31verifying the change in dwelling. Further notifications to the assessor are not required if the
6Section 1.
REVISOR MS/VJ 25-0026111/14/24 7.1property continues to meet all the requirements in this paragraph and any dwellings on the
7.2agricultural land remain uninhabited.
7.3 EFFECTIVE DATE.This section is effective beginning with assessment year 2026.
7Section 1.
REVISOR MS/VJ 25-0026111/14/24