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SF245 (Legislative Session 94 (2025-2026))

Qualified relatives expansion for special agricultural homestead

Related bill: HF1409

AI Generated Summary

The bill SF No. 245 aims to modify the Minnesota Statutes regarding taxation for special agricultural homesteads, specifically enhancing the eligibility criteria for property owners. Here are some simplified key points:

  1. Agricultural Homestead Classification: Properties less than ten acres that meet certain adjacency and ownership criteria can be classified as agricultural homesteads (class 2a), allowing for potential tax benefits.

  2. Expanded Definition of Qualified Relatives: The bill expands the list of relatives who can qualify a property for agricultural homestead status if they are actively farming the land. This list now includes a wider array of family members such as grandchildren, siblings, uncles/aunts, nieces/nephews, plus step-relatives.

  3. Residence Proximity and Ownership Conditions: The owner and the relative actively farming the property must both reside in Minnesota. Additionally, neither can claim another agricultural homestead in the state, and they must live within a specific proximity to the farmland.

  4. Consistent Classification Amid Relocations: Properties that had to relocate homesteads due to natural disasters such as floods or tornadoes (dating back to incidents in 1997 and 1998) are allowed to retain their agricultural homestead classification under specific conditions, such as continued ownership and location within the state.

  5. Corporate and Partnership Farms: The bill also clarifies that agricultural properties owned by family farm corporations, joint ventures, or partnerships, which are operated by qualifying family members, can receive homestead status, provided certain criteria are met (like minimum acreage and proximity of residence).

  6. Application Process: It simplifies the annual homestead application process for farmers once the first comprehensive application is accepted, assuming no significant changes have occurred.

The goal of these changes is to facilitate and maintain homestead benefits for families involved in agriculture, recognizing the broad spectrum of family structures, and supporting agricultural operations through potentially favorable tax classifications.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 15, 2025SenateFloorActionIntroduction and first reading
January 15, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Expanded list of qualified relatives for agricultural homestead classification."
      ],
      "removed": [],
      "summary": "This bill modifies special agricultural homestead provisions under section 273.124.",
      "modified": [
        "Adjusts criteria for noncontiguous land to be included as part of a homestead."
      ]
    },
    "citation": "273.124"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies classifications of agricultural homesteads under section 273.13.",
      "modified": [
        "Ensures specified properties maintain their classification despite changes due to natural disasters."
      ]
    },
    "citation": "273.13"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references payment of in lieu taxes on land administered by the Department of Natural Resources under sections 477A.11 to 477A.14.",
      "modified": []
    },
    "citation": "477A.11 to 477A.14"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill includes references to tax payments under section 477A.17 for lands administered by the Department of Natural Resources.",
      "modified": []
    },
    "citation": "477A.17"
  }
]

Sponsors