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HF2316 (Legislative Session 94 (2025-2026))

Property tax; special agricultural homestead requirements modified.

Related bill: SF2772

AI Generated Summary

Purpose

This bill aims to modify the requirements relating to special agricultural homesteads in Minnesota. The adjustments are intended to specify and update conditions under which agricultural properties can be classified and taxed as homesteads.

Main Provisions

  • Classification of Small Homesteads: Real estate less than ten acres in size can be classified as class 2a agricultural property if certain conditions regarding proximity and additional land ownership are met.
  • Family and Partnership Farming: Agricultural properties operated or owned by specific family members or partnerships that meet residency and active farming criteria can be homesteaded. These properties must also be within a restricted distance from the primary residence.
  • Noncontiguous Land: Criteria are outlined for when noncontiguous lands can be included in a homestead classification, focusing on proximity and notification requirements to county assessors.
  • Flood and Tornado Damage Provisions: Properties that were affected by natural disasters like the flood of 1997 and a tornado in 1998 must meet specific criteria to maintain their homestead classification.
  • Corporate and Partnership Entities: Specifies conditions under which corporate or partnership-owned farms are eligible for homestead classification, based on active farming and majority ownership by qualifying relatives.
  • Application Process: Emphasizes the necessity of an initial full application to the county assessor, with simplified annual reapplication procedures if certain conditions remain unchanged.

Significant Changes

  • The bill updates the proximity criteria and clarifies which family members can be involved in the farming activities for homestead classification.
  • It introduces conditions under which noncontiguous parcels of land can still be considered part of a homestead.
  • Maintains the agricultural homestead classification for properties displaced by natural disasters under specific circumstances.

Relevant Terms

  • Agricultural homestead
  • Class 2a property
  • Noncontiguous land
  • Family farm corporation
  • Natural disaster (floods, tornadoes)
  • County assessor
  • Minnesota residency
  • Special agricultural homestead

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies requirements for special agricultural homestead under section 273.124.",
      "modified": [
        "Updates criteria for agricultural homestead classification, including property proximity, ownership, and use.",
        "Specifies conditions under which noncontiguous land can be classified as part of the homestead."
      ]
    },
    "citation": "273.124"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amendments to classification rules for agricultural property under section 273.13, subdivision 23.",
      "modified": [
        "Clarifies classification of certain homesteads and associated agricultural lands."
      ]
    },
    "citation": "273.13"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References in-lieu tax payment provisions under sections 477A.11 to 477A.14.",
      "modified": []
    },
    "citation": "477A.11"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References continuation of in-lieu tax provisions up to section 477A.14.",
      "modified": []
    },
    "citation": "477A.14"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Includes section 477A.17 for payment in-lieu of taxes.",
      "modified": []
    },
    "citation": "477A.17"
  }
]

Sponsors