HF 3718

as introduced - 86th Legislature (2009 - 2010) Posted on 03/22/2010 09:32am

A bill for an act
relating to taxation; property; extending the homestead classification to certain
property; amending Minnesota Statutes 2008, section 273.124, subdivision 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 273.124, subdivision 8, is amended to read:

Subd. 8.

Homestead owned by or leased to family farm corporation, joint farm
venture, limited liability company, or partnership.

(a) Each family farm corporation;
each joint family farm venture; and each limited liability company or partnership which
operates a family farm; is entitled to class 1b under section 273.13, subdivision 22,
paragraph (b), or class 2a assessment for one homestead occupied by a shareholder,
member, or partner thereof who is residing on the land, and actively engaged in farming of
the land owned by the family farm corporation, joint family farm venture, limited liability
company, or partnership. Homestead treatment applies even if legal title to the property is
in the name of the family farm corporation, joint family farm venture, limited liability
company, or partnership, and not in the name of the person residing on it.

"Family farm corporation," "family farm," and "partnership operating a family
farm" have the meanings given in section 500.24, except that the number of allowable
shareholders, members, or partners under this subdivision shall not exceed 12. "Limited
liability company" has the meaning contained in sections 322B.03, subdivision 28, and
500.24, subdivision 2, paragraphs (l) and (m). "Joint family farm venture" means a
cooperative agreement among two or more farm enterprises authorized to operate a family
farm under section 500.24.

(b) In addition to property specified in paragraph (a), any other residences owned
by family farm corporations, joint family farm ventures, limited liability companies,
or partnerships described in paragraph (a) which are located on agricultural land and
occupied as homesteads by its shareholders, members, or partners who are actively
engaged in farming on behalf of that corporation, joint farm venture, limited liability
company, or partnership must also be assessed as class 2a property or as class 1b property
under section 273.13.

(c) Agricultural property that is owned by a member, partner, or shareholder of a
family farm corporation or joint family farm venture, limited liability company operating
a family farm, or by a partnership operating a family farm and leased to the family farm
corporation, limited liability company, partnership, or joint farm venture, as defined in
paragraph (a), is eligible for classification as class 1b or class 2a under section 273.13, if
the owner is actually residing on the property, and is actually engaged in farming the land
on behalf of that corporation, joint farm venture, limited liability company, or partnership.
This paragraph applies without regard to any legal possession rights of the family farm
corporation, joint family farm venture, limited liability company, or partnership under
the lease.

new text begin (d) Real property that (1) is owned by or leased to a family farm corporation, joint
farm venture, limited liability company, or partnership and (2) is contiguous to a class 2a
homestead under section 273.13, subdivision 23, or if noncontiguous, provided that the
detached land is located in the same township or city, or not farther than four townships
or cities, or combination thereof, that is occupied by one of the shareholders, members,
or partners; is entitled to receive the first tier homestead class rate up to the first tier
maximum market value on any remaining market value not received on the shareholder's,
member's, or partner's homestead class 2a property. The owner must notify the county
assessor by July 1 that a portion of the market value under this subdivision may be
eligible for homestead classification for the current assessment year, for taxes payable in
the following year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2010 and
thereafter, for taxes payable in 2011 and thereafter.
new text end