SF755 (Legislative Session 94 (2025-2026))
Shareholder limit increase for entity-owned agricultural homestead property
Related bill: HF1423
AI Generated Summary
The legislative bill SF No 755 seeks to modify how agricultural property owned by certain entities like family farm corporations, joint farm ventures, limited liability companies (LLCs), and partnerships are taxed in Minnesota. Specifically, it aims to increase the number of allowable shareholders, members, or partners from 12 to 18 for these entities. This change would enable more entities to qualify their land as homestead property, potentially leading to more favorable tax classifications (1b or 2a) for one residential homestead per entity that is occupied by a shareholder, member, or partner who lives on and actively farms the land. The bill clarifies that this homestead treatment can apply regardless of whether the legal title to the property is in the name of an individual or the entity, and it extends the potential tax benefits under specific conditions to additional residences and nonhomestead agricultural property related to these farming entities. This could result in reduced tax rates for these properties, supporting family and jointly-owned agricultural operations.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| January 29, 2025 | Senate | Floor | Action | Introduction and first reading | |
| January 29, 2025 | Senate | Floor | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"New limits are set for family farm corporation shareholders, members, and partners."
],
"removed": [],
"summary": "This bill modifies the shareholder limit for family farm corporations pertaining to homestead classification.",
"modified": [
"The number of allowable shareholders, members, or partners is increased from 12 to 18."
]
},
"citation": "273.124, subdivision 8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references the classification for property taxes for qualifying farms.",
"modified": []
},
"citation": "273.13, subdivision 22, paragraph b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill cross-references the definitions for family farm entities.",
"modified": []
},
"citation": "500.24"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references the definition of limited liability companies.",
"modified": []
},
"citation": "322C.0102, subdivision 12"
}
]