1.1 	A bill for an act
1.2 	relating to taxation; property; extending the homestead classification to certain 
1.3 	property;amending Minnesota Statutes 2008, section 273.124, subdivision 8.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2008, section 273.124, subdivision 8, is amended to read:
1.6 		Subd. 8.Homestead owned by or leased to family farm corporation, joint farm 
1.7 	venture, limited liability company, or partnership. (a) Each family farm corporation; 
1.8 	each joint family farm venture; and each limited liability company or partnership which 
1.9 	operates a family farm; is entitled to class 1b under section 273.13, subdivision 22, 
1.10 	paragraph (b), or class 2a assessment for one homestead occupied by a shareholder, 
1.11 	member, or partner thereof who is residing on the land, and actively engaged in farming of 
1.12 	the land owned by the family farm corporation, joint family farm venture, limited liability 
1.13 	company, or partnership. Homestead treatment applies even if legal title to the property is 
1.14 	in the name of the family farm corporation, joint family farm venture, limited liability 
1.15 	company, or partnership, and not in the name of the person residing on it.
1.16 	"Family farm corporation," "family farm," and "partnership operating a family 
1.17 	farm" have the meanings given in section 500.24, except that the number of allowable 
1.18 	shareholders, members, or partners under this subdivision shall not exceed 12. "Limited 
1.19 	liability company" has the meaning contained in sections 322B.03, subdivision 28, and 
1.20 	500.24, subdivision 2, paragraphs (l) and (m). "Joint family farm venture" means a 
1.21 	cooperative agreement among two or more farm enterprises authorized to operate a family 
1.22 	farm under section 500.24.
1.23 	(b) In addition to property specified in paragraph (a), any other residences owned 
1.24 	by family farm corporations, joint family farm ventures, limited liability companies, 
2.1 	or partnerships described in paragraph (a) which are located on agricultural land and 
2.2 	occupied as homesteads by its shareholders, members, or partners who are actively 
2.3 	engaged in farming on behalf of that corporation, joint farm venture, limited liability 
2.4 	company, or partnership must also be assessed as class 2a property or as class 1b property 
2.5 	under section 273.13.
2.6 	(c) Agricultural property that is owned by a member, partner, or shareholder of a 
2.7 	family farm corporation or joint family farm venture, limited liability company operating 
2.8 	a family farm, or by a partnership operating a family farm and leased to the family farm 
2.9 	corporation, limited liability company, partnership, or joint farm venture, as defined in 
2.10 	paragraph (a), is eligible for classification as class 1b or class 2a under section 273.13, if 
2.11 	the owner is actually residing on the property, and is actually engaged in farming the land 
2.12 	on behalf of that corporation, joint farm venture, limited liability company, or partnership. 
2.13 	This paragraph applies without regard to any legal possession rights of the family farm 
2.14 	corporation, joint family farm venture, limited liability company, or partnership under 
2.15 	the lease.
2.16 	(d) Real property that (1) is owned by or leased to a family farm corporation, joint 
2.17 	farm venture, limited liability company, or partnership and (2) is contiguous to a class 2a 
2.18 	homestead under section 273.13, subdivision 23, or if noncontiguous, provided that the 
2.19 	detached land is located in the same township or city, or not farther than four townships 
2.20 	or cities, or combination thereof, that is occupied by one of the shareholders, members, 
2.21 	or partners; is entitled to receive the first tier homestead class rate up to the first tier 
2.22 	maximum market value on any remaining market value not received on the shareholder's, 
2.23 	member's, or partner's homestead class 2a property. The owner must notify the county 
2.24 	assessor by July 1 that a portion of the market value under this subdivision may be 
2.25 	eligible for homestead classification for the current assessment year, for taxes payable in 
2.26 	the following year.

2.27 	EFFECTIVE DATE. This section is effective for assessment year 2010 and 
2.28 	thereafter, for taxes payable in 2011 and thereafter.