Minnesota SF 245: Qualified relatives expansion for special agricultural homestead

Bill Text

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.​
1.4 BE 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​
1.7 acres that is the homestead of its owner must be classified as class 2a under section 273.13,​
1.8 subdivision 23, paragraph (a), if:​
1.9 (1) the parcel on which the house is located is contiguous on at least two sides to (i)​
1.10 agricultural land, (ii) land owned or administered by the United States Fish and Wildlife​
1.11 Service, or (iii) land administered by the Department of Natural Resources on which in lieu​
1.12 taxes 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​
1.14 acres;​
1.15 (3) the noncontiguous land is located not farther than four townships or cities, or a​
1.16 combination 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​
1.18 at 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​
1.20 remain classified as class 2a, irrespective of subsequent changes in the use of adjoining​
1.21 properties, as long as the homestead remains under the same ownership, the owner owns a​
1.22 noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use​
1​Section 1.​
25-00261 as introduced​11/14/24 REVISOR MS/VJ​
SENATE​
STATE OF MINNESOTA​
S.F. No. 245​NINETY-FOURTH SESSION​
(SENATE AUTHORS: WEBER, Dahms and Rest)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​98​01/16/2025​
Referred to Taxes​

2.1 value qualifies under clause (4). Homestead classification under this paragraph is limited​
2.2 to 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​
2.4 extent 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​
2.6 lots and correctional 40's;​
2.7 (2) the owner, the owner's spouse, or a grandparent, grandchild, child, stepchild, sibling,​
2.8 or uncle, aunt, nephew, niece, parent, or stepparent of the owner or of the owner's spouse,​
2.9 is actively farming the agricultural property, either on the person's own behalf as an individual​
2.10 or on behalf of a partnership operating a family farm, family farm corporation, joint family​
2.11 farm venture, or limited liability company of which the person is a partner, shareholder, or​
2.12 member;​
2.13 (3) both the owner of the agricultural property and the person who is actively farming​
2.14 the agricultural property under clause (2), are Minnesota residents;​
2.15 (4) neither the owner nor the spouse of the owner claims another agricultural homestead​
2.16 in Minnesota; and​
2.17 (5) neither the owner nor the person actively farming the agricultural property lives​
2.18 farther than four townships or cities, or a combination of four townships or cities, from the​
2.19 agricultural property, except that if the owner or the owner's spouse is required to live in​
2.20 employer-provided housing, the owner or owner's spouse, whichever is actively farming​
2.21 the agricultural property, may live more than four townships or cities, or combination of​
2.22 four 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​
2.25 clause (i) shall be classified as part of the owner's agricultural homestead, if that property​
2.26 is 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​
2.28 class 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,​
2.30 subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached​
2.31 land is located in the same township or city, or not farther than four townships or cities or​
2.32 combination thereof from the homestead. Any taxpayer of these noncontiguous lands must​
2.33 notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,​
2​Section 1.​
25-00261 as introduced​11/14/24 REVISOR MS/VJ​

3.1 and, if the homestead is located i