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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

Actions

DateChamberWhereTypeNameCommittee Name
January 29, 2025HouseFloorActionIntroduction and first reading
January 29, 2025SenateFloorActionIntroduction and first reading
January 29, 2025HouseFloorActionReferred toTaxes
January 29, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Increases the maximum number of allowable shareholders, members, or partners in an agricultural homestead entity from 12 to an unspecified higher number."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends the shareholder limit for entity-owned agricultural homestead properties under section 273.124, subdivision 8.",
      "modified": [
        "Revises criteria and conditions under which homestead treatment and property tax assessment rates apply for family farm corporations, joint family farm ventures, limited liability companies, or partnerships."
      ]
    },
    "citation": "273.124",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Defines terms associated with family farm corporations and joint family farm ventures.",
      "modified": [
        "Clarifies definitions and conditions related to agricultural entities and how they are assessed for property tax purposes."
      ]
    },
    "citation": "500.24",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References the definition of a limited liability company in relation to family farms.",
      "modified": [
        "Further explanation on LLC eligibility and criteria for agricultural property assessments."
      ]
    },
    "citation": "322C.0102",
    "subdivision": "subdivision 12"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Refers to property classifications related to agricultural homesteads.",
      "modified": [
        "Adjusts classifications and property tax implications for family agricultural entities."
      ]
    },
    "citation": "273.13",
    "subdivision": ""
  }
]

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