HF 2406

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; extending homestead 
  1.3             classification to certain property held by an 
  1.4             individual; extending homestead classification to 
  1.5             certain trust property; making technical changes; 
  1.6             amending Minnesota Statutes 2000, section 273.124, 
  1.7             subdivisions 8; 14.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 273.124, 
  1.10  subdivision 8, is amended to read: 
  1.11     Subd. 8.  [HOMESTEAD OWNED BY OR LEASED TO FAMILY FARM 
  1.12  CORPORATION, JOINT FAMILY FARM VENTURE, FAMILY FARM LIMITED 
  1.13  LIABILITY COMPANY, OR PARTNERSHIP.] (a) Each family farm 
  1.14  corporation, each joint family farm venture, each family farm 
  1.15  limited liability company, and each partnership operating a 
  1.16  family farm is entitled to class 1b under section 273.13, 
  1.17  subdivision 22, paragraph (b), or class 2a assessment for one 
  1.18  homestead occupied by a shareholder, member, or partner thereof 
  1.19  who is residing on the land except as provided in subdivision 
  1.20  14, paragraph (g), and actively engaged in farming of the land 
  1.21  owned by the family farm corporation, joint family farm venture, 
  1.22  family farm limited liability company, or partnership operating 
  1.23  a family farm.  Homestead treatment applies even if legal title 
  1.24  to the property is in the name of the family farm corporation, 
  1.25  joint family farm venture, family farm limited liability 
  1.26  company, or partnership operating the family farm, and not in 
  2.1   the name of the person residing on it. 
  2.2      "Family farm corporation," "family farm," and "farm 
  2.3   partnership operating a family farm" have the meanings given in 
  2.4   section 500.24, except that the number of allowable 
  2.5   shareholders, members, or partners under this subdivision shall 
  2.6   not exceed 12.  "Family farm limited liability company" has 
  2.7   the same meaning contained in section 322B.03, subdivision 28.  
  2.8   "Joint family farm venture" means a cooperative agreement among 
  2.9   two or more farm enterprises authorized to operate a family farm 
  2.10  land under section 500.24. 
  2.11     (b) In addition to property specified in paragraph (a), any 
  2.12  other residences owned by family farm corporations, joint family 
  2.13  farm ventures, family farm limited liability companies, or 
  2.14  partnerships operating a family farm described in paragraph (a) 
  2.15  which are located on agricultural land and occupied as 
  2.16  homesteads by its shareholders, members, or partners who are 
  2.17  actively engaged in farming on behalf of the that corporation, 
  2.18  joint farm venture, limited liability company, or partnership 
  2.19  must also be assessed as class 2a property or as class 1b 
  2.20  property under section 273.13, subdivision 22, paragraph (b). 
  2.21     (c) Agricultural property that is owned by a member, 
  2.22  partner, or shareholder of a family farm corporation or 
  2.23  joint family farm venture, as defined in paragraph (a), or by a 
  2.24  member of a family farm limited liability company, or by a 
  2.25  partner in a partnership operating a family farm and leased to 
  2.26  the family farm corporation by the shareholder, or to a member 
  2.27  of a, family farm limited liability company, or to the 
  2.28  partnership by the partner operating a family farm, or joint 
  2.29  farm venture, all of which are defined in paragraph (a), is 
  2.30  eligible for classification as class 1b or class 2a under 
  2.31  section 273.13, subdivision 22, paragraph (b), or class 2a under 
  2.32  section 273.13, subdivision 23, paragraph (a), if the owner is 
  2.33  actually residing on the property except as provided in 
  2.34  subdivision 14, paragraph (g), and is actually engaged in 
  2.35  farming the land on behalf of the that corporation, joint farm 
  2.36  venture, limited liability company, or partnership.  This 
  3.1   paragraph applies without regard to any legal possession rights 
  3.2   of the family farm corporation, joint family farm venture, 
  3.3   family farm limited liability company, or partnership operating 
  3.4   a family farm under the lease. 
  3.5      [EFFECTIVE DATE.] This section is effective for the 2001 
  3.6   assessment, taxes payable in 2002, and thereafter. 
  3.7      Sec. 2.  Minnesota Statutes 2000, section 273.124, 
  3.8   subdivision 14, is amended to read: 
  3.9      Subd. 14.  [AGRICULTURAL HOMESTEADS; SPECIAL PROVISIONS.] 
  3.10  (a) Real estate of less than ten acres that is the homestead of 
  3.11  its owner must be classified as class 2a under section 273.13, 
  3.12  subdivision 23, paragraph (a), if:  
  3.13     (1) the parcel on which the house is located is contiguous 
  3.14  on at least two sides to (i) agricultural land, (ii) land owned 
  3.15  or administered by the United States Fish and Wildlife Service, 
  3.16  or (iii) land administered by the department of natural 
  3.17  resources on which in lieu taxes are paid under sections 477A.11 
  3.18  to 477A.14; 
  3.19     (2) its owner also owns a noncontiguous parcel of 
  3.20  agricultural land that is at least 20 acres; 
  3.21     (3) the noncontiguous land is located not farther than four 
  3.22  townships or cities, or a combination of townships or cities 
  3.23  from the homestead; and 
  3.24     (4) the agricultural use value of the noncontiguous land 
  3.25  and farm buildings is equal to at least 50 percent of the market 
  3.26  value of the house, garage, and one acre of land. 
  3.27     Homesteads initially classified as class 2a under the 
  3.28  provisions of this paragraph shall remain classified as class 
  3.29  2a, irrespective of subsequent changes in the use of adjoining 
  3.30  properties, as long as the homestead remains under the same 
  3.31  ownership, the owner owns a noncontiguous parcel of agricultural 
  3.32  land that is at least 20 acres, and the agricultural use value 
  3.33  qualifies under clause (4).  Homestead classification under this 
  3.34  paragraph is limited to property that qualified under this 
  3.35  paragraph for the 1998 assessment. 
  3.36     (b)(i) Agricultural property consisting of at least 40 
  4.1   acres shall be classified as the owner's homestead, to the same 
  4.2   extent as other agricultural homestead property, if all of the 
  4.3   following criteria are met: 
  4.4      (1) the owner, the owner's spouse, or the owner's son or 
  4.5   daughter of the owner or owner's spouse, is actively farming the 
  4.6   agricultural property, either on the person's own behalf as an 
  4.7   individual or on behalf of a partnership operating a family 
  4.8   farm, family farm corporation, joint family farm venture, or 
  4.9   family farm limited liability company of which the person is a 
  4.10  partner, shareholder, or member; 
  4.11     (2) both the owner of the agricultural property is a 
  4.12  Minnesota resident, and if the owner's son or daughter person 
  4.13  who is actively farming the agricultural property under clause 
  4.14  (1), that person must also be a are Minnesota 
  4.15  resident residents; 
  4.16     (3) neither the owner nor the spouse of the owner claims 
  4.17  another agricultural homestead in Minnesota; and 
  4.18     (4) neither the owner does not live, nor the person 
  4.19  actively farming the property, lives farther than four townships 
  4.20  or cities, or a combination of four townships or cities, from 
  4.21  the agricultural property, and if the owner's son or daughter is 
  4.22  actively farming the agricultural property under clause (1), 
  4.23  that person must also live within the four townships or cities, 
  4.24  or combination of four townships or cities from the agricultural 
  4.25  property. 
  4.26     The relationship under this paragraph may be either by 
  4.27  blood or marriage. 
  4.28     (ii) Real property held by a trustee under a trust is 
  4.29  eligible for agricultural homestead classification under this 
  4.30  paragraph if the qualifications in clause (i) are met, except 
  4.31  that "owner" means the grantor of the trust. 
  4.32     (ii) (iii) Property containing the residence of an owner 
  4.33  who owns qualified property under clause (i) shall be classified 
  4.34  as part of the owner's agricultural homestead, if that property 
  4.35  is also used for noncommercial storage or drying of agricultural 
  4.36  crops. 
  5.1      (c) Except as provided in paragraph (e), Noncontiguous land 
  5.2   shall be included as part of a homestead under section 273.13, 
  5.3   subdivision 23, paragraph (a), only if the homestead is 
  5.4   classified as class 2a and the detached land is located in the 
  5.5   same township or city, or not farther than four townships or 
  5.6   cities or combination thereof from the homestead.  Any taxpayer 
  5.7   of these noncontiguous lands must notify the county assessor 
  5.8   that the noncontiguous land is part of the taxpayer's homestead, 
  5.9   and, if the homestead is located in another county, the taxpayer 
  5.10  must also notify the assessor of the other county. 
  5.11     (d) Agricultural land used for purposes of a homestead and 
  5.12  actively farmed by a person holding a vested remainder interest 
  5.13  in it must be classified as a homestead under section 273.13, 
  5.14  subdivision 23, paragraph (a).  If agricultural land is 
  5.15  classified class 2a, any other dwellings on the land used for 
  5.16  purposes of a homestead by persons holding vested remainder 
  5.17  interests who are actively engaged in farming the property, and 
  5.18  up to one acre of the land surrounding each homestead and 
  5.19  reasonably necessary for the use of the dwelling as a home, must 
  5.20  also be assessed class 2a. 
  5.21     (e) Agricultural land and buildings that were class 2a 
  5.22  homestead property under section 273.13, subdivision 23, 
  5.23  paragraph (a), for the 1997 assessment shall remain classified 
  5.24  as agricultural homesteads for subsequent assessments if:  
  5.25     (1) the property owner abandoned the homestead dwelling 
  5.26  located on the agricultural homestead as a result of the April 
  5.27  1997 floods; 
  5.28     (2) the property is located in the county of Polk, Clay, 
  5.29  Kittson, Marshall, Norman, or Wilkin; 
  5.30     (3) the agricultural land and buildings remain under the 
  5.31  same ownership for the current assessment year as existed for 
  5.32  the 1997 assessment year and continue to be used for 
  5.33  agricultural purposes; 
  5.34     (4) the dwelling occupied by the owner is located in 
  5.35  Minnesota and is within 30 miles of one of the parcels of 
  5.36  agricultural land that is owned by the taxpayer; and 
  6.1      (5) the owner notifies the county assessor that the 
  6.2   relocation was due to the 1997 floods, and the owner furnishes 
  6.3   the assessor any information deemed necessary by the assessor in 
  6.4   verifying the change in dwelling.  Further notifications to the 
  6.5   assessor are not required if the property continues to meet all 
  6.6   the requirements in this paragraph and any dwellings on the 
  6.7   agricultural land remain uninhabited. 
  6.8      (f) Agricultural land and buildings that were class 2a 
  6.9   homestead property under section 273.13, subdivision 23, 
  6.10  paragraph (a), for the 1998 assessment shall remain classified 
  6.11  agricultural homesteads for subsequent assessments if: 
  6.12     (1) the property owner abandoned the homestead dwelling 
  6.13  located on the agricultural homestead as a result of damage 
  6.14  caused by a March 29, 1998, tornado; 
  6.15     (2) the property is located in the county of Blue Earth, 
  6.16  Brown, Cottonwood, LeSueur, Nicollet, Nobles, or Rice; 
  6.17     (3) the agricultural land and buildings remain under the 
  6.18  same ownership for the current assessment year as existed for 
  6.19  the 1998 assessment year; 
  6.20     (4) the dwelling occupied by the owner is located in this 
  6.21  state and is within 50 miles of one of the parcels of 
  6.22  agricultural land that is owned by the taxpayer; and 
  6.23     (5) the owner notifies the county assessor that the 
  6.24  relocation was due to a March 29, 1998, tornado, and the owner 
  6.25  furnishes the assessor any information deemed necessary by the 
  6.26  assessor in verifying the change in homestead dwelling.  For 
  6.27  taxes payable in 1999, the owner must notify the assessor by 
  6.28  December 1, 1998.  Further notifications to the assessor are not 
  6.29  required if the property continues to meet all the requirements 
  6.30  in this paragraph and any dwellings on the agricultural land 
  6.31  remain uninhabited. 
  6.32     (g) Agricultural property consisting of at least 40 acres 
  6.33  of a family farm corporation, joint family farm venture, family 
  6.34  farm limited liability company, or partnership operating a 
  6.35  family farm as described under subdivision 8 shall be classified 
  6.36  homestead, to the same extent as other agricultural homestead 
  7.1   property, if all of the following criteria are met: 
  7.2      (1) the a shareholder, member, or partner of that entity is 
  7.3   actively farming the agricultural property; 
  7.4      (2) the that shareholder, member, or partner of who is 
  7.5   actively farming the agricultural property is a Minnesota 
  7.6   resident; 
  7.7      (3) neither the that shareholder, member, or partner, nor 
  7.8   the spouse of the that shareholder, member, or partner claims 
  7.9   another agricultural homestead in Minnesota; and 
  7.10     (4) the that shareholder, member, or partner does not live 
  7.11  farther than four townships or cities, or a combination of four 
  7.12  townships or cities, from the agricultural property. 
  7.13     Homestead treatment applies under this paragraph for 
  7.14  property leased to a family farm corporation, joint farm 
  7.15  venture, family farm limited liability company, or partnership 
  7.16  operating a family farm if legal title to the property is in the 
  7.17  name of an individual who is a member, shareholder, or partner 
  7.18  in the entity. 
  7.19     [EFFECTIVE DATE.] This section is effective for the 2001 
  7.20  assessment, taxes payable in 2002, and thereafter.