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SF2772 (Legislative Session 94 (2025-2026))

Special agricultural homestead requirements modifications

Related bill: HF2316

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify the requirements for special agricultural homestead classifications in Minnesota. It aims to adjust property classification rules to benefit owners of small or non-contiguous agricultural parcels that qualify under specific conditions.

Main Provisions

  • Homestead Classification: Owners of real estate less than ten acres that is their homestead can classify it as agricultural homestead (class 2a) if the property meets certain conditions. This includes the property being contiguous with at least two sides to qualifying lands and the owner having another parcel of agricultural land of at least 20 acres not further than four townships or cities away.
  • Active Farming Requirements: Agricultural property must be actively farmed by the owner, their relatives, or as part of a family farm enterprise (e.g., corporation or LLC) for it to qualify as a homestead. Both the owner and the person farming need to be Minnesota residents who do not claim another agricultural homestead in the state.
  • Noncontiguous Lands: If a homestead is classified as class 2a, noncontiguous agricultural land owned by the same person, located within the specified distance from the homestead, can also receive this classification.
  • Special Circumstances and Historical Treatment: Properties affected by historical natural disasters (e.g., floods, tornadoes) and already classified as class 2a will retain their classification. This includes properties damaged in 1997, 1998, 2007, 2008, and 2009 under specified circumstances, provided that certain conditions regarding ownership and location are met.

Significant Changes

  • The bill updates and clarifies the definitions for what constitutes agricultural homestead property and the requirements for maintaining such a classification.
  • Specific criteria for residence and ownership connections to agricultural operations are enhanced to ensure proper classification.
  • Historical accommodations are reiterated to maintain continuity for lands affected by past natural disasters that meet existing reporting and eligibility standards.

Relevant Terms

  • Agricultural homestead
  • Class 2a property
  • Contiguous and non-contiguous land
  • Family farm
  • Minnesota residency
  • Natural disasters (floods, tornadoes)
  • Property classification and assessment

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "New criteria and specifications for maintaining agricultural homestead status in various circumstances such as distance and residency requirements."
      ],
      "removed": [],
      "summary": "This bill addresses changes related to special agricultural homestead requirements under section 273.124, subdivision 14.",
      "modified": [
        "Clarification on the criteria and specifications under which agricultural property would be classified as a homestead.",
        "Adjustments in eligibility criteria for agricultural homesteads when there are changes in ownership or inhabitation due to natural disasters."
      ]
    },
    "citation": "273.124"
  },
  {
    "analysis": {
      "added": [
        "Provisions on noncontiguous land being classified under the same class as homestead land."
      ],
      "removed": [],
      "summary": "Modifications in classification of agricultural land by referencing section 273.13 subdivision 23",
      "modified": [
        "The criteria for contiguous and noncontiguous land for classification under the same class as agricultural homestead land."
      ]
    },
    "citation": "273.13"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to payments in lieu of taxes for lands under management.",
      "modified": []
    },
    "citation": "477A.11"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to payments in lieu of taxes for lands under management.",
      "modified": []
    },
    "citation": "477A.14"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to payments in lieu of taxes for lands under management.",
      "modified": []
    },
    "citation": "477A.17"
  }
]

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