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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 bill aims to revise the classification guidelines for agricultural homesteads in Minnesota. It seeks to clarify and modify the requirements for real estate to be considered as special agricultural homesteads, particularly for taxation purposes.

Main Provisions

  • Size and Contiguity Requirements: For a property less than ten acres to qualify as an agricultural homestead, it must be contiguous on at least two sides with agricultural land, or land managed by governmental bodies. Additionally, the owner must own at least one noncontiguous piece of agricultural land that is at least 20 acres.

  • Proximity Specifications: This noncontiguous land must not be farther than four townships or cities away from the homestead.

  • Homestead Classification and Continuity: Classifications remain unchanged as long as ownership stays consistent, regardless of changes in the surrounding land use.

  • Active Farming Requirement: To qualify, a family member must be actively farming the property. This includes owners, their spouse, or close relatives actively farming either individually or as part of a family-oriented corporate or partnership setup.

  • Inheritance and Relocation Clauses:

    • Special provisions are included for properties affected by disasters such as floods or tornadoes, allowing them to retain their agricultural homestead status.
    • Requirements specify how far the owner or their family member can live from the property and still qualify for the homestead status if actively farming.

  • Application Procedures: Initial full applications are mandatory, while subsequent years may only require an abbreviated form if no changes have occurred in operation, residency, or land use.

Significant Changes

  • Retains Historical Classifications: Properties previously qualified under certain conditions (such as those affected by natural disasters) continue to retain their homestead classification regardless of current changes.
  • Standardizes Application Process: Simplifies ongoing application processes for homestead classification, requiring shorter forms unless major changes occur.

Relevant Terms

  • Agricultural Homestead
  • Class 2a Property
  • Contiguous Land
  • Noncontiguous Parcel
  • Active Farming
  • Family Farm Corporation
  • Vested Remainder Interest
  • Flood and Tornado Provisions
  • Minnesota Statutes Section 273.124 Subdivision 14

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the requirements for special agricultural homestead under section 273.124, subdivision 14.",
      "modified": [
        "Adjust criteria for classification of agricultural property as the owner's homestead.",
        "Incorporates previously established conditions for maintaining class 2a classification despite dwelling relocation due to natural disasters."
      ]
    },
    "citation": "273.124",
    "subdivision": "subdivision 14"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references classification guidelines under section 273.13, subdivision 23 for agricultural homesteads.",
      "modified": [
        "Clarify how noncontiguous lands can be classified as part of a homestead.",
        "Outline criteria for continued classification of agricultural land for specific assessment years."
      ]
    },
    "citation": "273.13",
    "subdivision": "subdivision 23"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section referenced in connection to taxes on lands administered by the Department of Natural Resources.",
      "modified": []
    },
    "citation": "477A.11",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section referenced in connection to taxes on lands administered by the Department of Natural Resources.",
      "modified": []
    },
    "citation": "477A.14",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section referenced in connection to taxes on lands administered by the Department of Natural Resources.",
      "modified": []
    },
    "citation": "477A.17",
    "subdivision": ""
  }
]

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