Minneslate Logo

HF2316 (Legislative Session 94 (2025-2026))

Property tax; special agricultural homestead requirements modified.

Related bill: SF2772

AI Generated Summary

This bill amends Minnesota's property tax laws, specifically modifying the requirements for special agricultural homesteads. The key provisions of the bill include:

  1. Homestead Classification for Small Parcels:

    • Allows real estate of less than 10 acres to qualify as agricultural homestead if it meets specific criteria, such as being contiguous to other agricultural land or conservation land and being owned by someone who also owns at least 20 acres of noncontiguous agricultural land.

  2. Expanded Homestead Eligibility for Agricultural Property:

    • Agricultural property of at least 40 acres may be classified as a homestead if it is actively farmed by the owner or close family members (spouse, child, parent, sibling, or grandchild).
    • The owner or farmer must reside in Minnesota and within four townships or cities of the agricultural property.

  3. Noncontiguous Land Inclusion:

    • Noncontiguous land can be included in the homestead classification if it is within the same township or no more than four townships or cities away.
    • Property owners must notify assessors when claiming homestead status for noncontiguous land.

  4. Special Homestead Provisions Due to Natural Disasters:

    • Ensures continued homestead classification for agricultural properties damaged or abandoned due to natural disasters such as the 1997 floods, 1998 tornado, 2007 floods, and 2009 floods, provided they meet residency and ownership criteria.

  5. Homestead Eligibility for Family Farm Entities:

    • Extends homestead classification to agricultural property owned by family farm corporations, partnerships, and joint ventures, under specific ownership and residency conditions.

  6. Application and Renewal Process:

    • Requires an initial full application for special agricultural homestead status.
    • Allows for a simplified renewal process if key factors remain unchanged (e.g., ownership, farm operation, residency).

The bill aims to provide more flexibility and stability for agricultural homesteads, ensuring that qualifying farmland owners and operators maintain favorable tax classifications even in certain special circumstances.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 12, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
April 30, 2025HouseFloorActionAuthor added
April 30, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Defines new eligibility criteria for agricultural homestead classification."
      ],
      "removed": [
        "Eliminates previous distance restrictions for certain relatives owning or operating the farm."
      ],
      "summary": "This bill modifies the requirements for special agricultural homesteads under section 273.124, subdivision 14.",
      "modified": [
        "Adjusts the notification requirement to the county assessor for changes due to natural disasters."
      ]
    },
    "citation": "273.124",
    "subdivision": "subdivision 14"
  },
  {
    "analysis": {
      "added": [
        "Introduces provisions for classifying noncontiguous agricultural properties."
      ],
      "removed": [
        "Removes requirement for adjacent property adherence for classification."
      ],
      "summary": "This legislation relates to the classification of agricultural homestead property under section 273.13, subdivision 23.",
      "modified": [
        "Changes criteria for maintaining classification post-disaster."
      ]
    },
    "citation": "273.13",
    "subdivision": "subdivision 23"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 477A.11 regarding state payment in lieu of taxes.",
      "modified": []
    },
    "citation": "477A.11",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 477A.14 related to in lieu tax payments.",
      "modified": []
    },
    "citation": "477A.14",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 477A.17, which deals with land administered by the Department of Natural Resources in lieu of taxes.",
      "modified": []
    },
    "citation": "477A.17",
    "subdivision": ""
  }
]

Sponsors