SF 949

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; providing homestead 
  1.3             treatment for certain property leased to a family farm 
  1.4             corporation; amending Minnesota Statutes 1998, section 
  1.5             273.124, subdivision 8. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 273.124, 
  1.8   subdivision 8, is amended to read: 
  1.9      Subd. 8.  [HOMESTEAD OWNED BY FAMILY FARM CORPORATION OR 
  1.10  PARTNERSHIP OR LEASED TO FAMILY FARM CORPORATION.] (a) Each 
  1.11  family farm corporation and each partnership operating a family 
  1.12  farm is entitled to class 1b under section 273.13, subdivision 
  1.13  22, paragraph (b), or class 2a assessment for one homestead 
  1.14  occupied by a shareholder or partner thereof who is residing on 
  1.15  the land and actively engaged in farming of the land owned by 
  1.16  the corporation or partnership.  Homestead treatment applies 
  1.17  even if legal title to the property is in the name of the 
  1.18  corporation or partnership and not in the name of the person 
  1.19  residing on it.  "Family farm corporation" and "family farm" 
  1.20  have the meanings given in section 500.24, except that the 
  1.21  number of allowable shareholders or partners under this 
  1.22  subdivision shall not exceed 12. 
  1.23     (b) In addition to property specified in paragraph (a), any 
  1.24  other residences owned by corporations or partnerships described 
  1.25  in paragraph (a) which are located on agricultural land and 
  2.1   occupied as homesteads by shareholders or partners who are 
  2.2   actively engaged in farming on behalf of the corporation or 
  2.3   partnership must also be assessed as class 2a property or as 
  2.4   class 1b property under section 273.13, subdivision 22, 
  2.5   paragraph (b), but the property eligible is limited to the 
  2.6   residence itself and as much of the land surrounding the 
  2.7   homestead, not exceeding one acre, as is reasonably necessary 
  2.8   for the use of the dwelling as a home, and does not include any 
  2.9   other structures that may be located on it. 
  2.10     (c) Agricultural property owned by a shareholder of a 
  2.11  family farm corporation, as defined in paragraph (a), and leased 
  2.12  to the family farm corporation by the shareholder, is entitled 
  2.13  to class 1b under section 273.13, subdivision 22, paragraph (b), 
  2.14  or class 2a under section 273.13, subdivision 23, paragraph (a), 
  2.15  if the owner is actually residing on the property and is 
  2.16  actually engaged in farming the land on behalf of the 
  2.17  corporation.  This paragraph applies without regard to any legal 
  2.18  possession rights of the family farm corporation under the lease.
  2.19     Sec. 2.  [EFFECTIVE DATE.] 
  2.20     Section 1 is effective for taxes levied in 1999, payable in 
  2.21  2000, and thereafter.