Bill Text: MN SF1499 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Agricultural homestead determinations modifications
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-03-21 - Referred to Taxes [SF1499 Detail]
Download: Minnesota-2013-SF1499-Introduced.html
1.2relating to taxation; property; making changes to agricultural homestead
1.3determinations; amending Minnesota Statutes 2012, section 273.124,
1.4subdivisions 14, 21.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 273.124, subdivision 14, is amended to read:
1.7 Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than
1.8ten acres that is the homestead of its owner must be classified as class 2a under section
1.9273.13, subdivision 23
, paragraph (a), if:
1.10 (1) the parcel on which the house is located is contiguous on at least two sides to (i)
1.11agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
1.12Service, or (iii) land administered by the Department of Natural Resources on which in
1.13lieu taxes are paid under sections477A.11 to
477A.14 ;
1.14 (2) its owner also owns a noncontiguous parcel of agricultural land that is at least
1.1520 acres;
1.16 (3) the noncontiguous land is located not farther than four townships or cities, or a
1.17combination of townships or cities from the homestead; and
1.18 (4) the agricultural use value of the noncontiguous land and farm buildings is equal
1.19to at least 50 percent of the market value of the house, garage, and one acre of land.
1.20 Homesteads initially classified as class 2a under the provisions of this paragraph shall
1.21remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
1.22properties, as long as the homestead remains under the same ownership, the owner owns a
1.23noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
2.1value qualifies under clause (4). Homestead classification under this paragraph is limited
2.2to property that qualified under this paragraph for the 1998 assessment.
2.3(b)(i) Agricultural property shall be classified as the owner's homestead, to the same
2.4extent as other agricultural homestead property, if all of the following criteria are met:
2.5(1) the agricultural property consists of at least 40 acres including undivided
2.6government lots and correctional 40's;
2.7(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the
2.8owner or of the owner's spouse, is actively farming the agricultural property, either on the
2.9person's own behalf as an individual or on behalf of a partnership operating a family farm,
2.10family farm corporation, joint family farm venture, or limited liability company of which
2.11the person is a partner, shareholder, or member;
2.12(3) both the owner of the agricultural property and the person who is actively
2.13farming the agricultural property under clause (2), are Minnesota residents;
2.14(4) neither the owner nor the spouse of the owner claims another agricultural
2.15homestead in Minnesota; and
2.16(5) neither the owner nor the person actively farming the agricultural property lives
2.17farther than four townships or cities, or a combination of four townships or cities, from the
2.18agricultural property, except that if the owner or the owner's spouse is required to live in
2.19employer-provided housing, the owner or owner's spouse, whichever is actively farming
2.20the agricultural property, may live more than four townships or cities, or combination of
2.21four townships or cities from the agricultural property.
2.22The relationship under this paragraph may be either by blood or marriage.
2.23(ii) Agricultural property held by a trustee under a trust is eligible for agricultural
2.24homestead classification under this paragraph if the qualifications in clause (i) are met,
2.25except that "owner" means the grantor of the trust.
2.26(iii) Property containing the residence of an owner who owns qualified property
2.27under clause (i) shall be classified as part of the owner's agricultural homestead, if that
2.28property is also used for noncommercial storage or drying of agricultural crops.
2.29(iv) As used in this paragraph, "agricultural property" means class 2a property and
2.30any class 2b property that is contiguous to and under the same ownership as the class 2a
2.31property.
2.32(c) (b) Noncontiguous land shall be included as part of a homestead under section
2.33273.13, subdivision 23
, paragraph (a), only if the homestead is classified as class 2a
2.34and the detached land is located in the same township or city, or not farther than four
2.35townships or cities or combination thereof from the homestead. Any taxpayer of these
2.36noncontiguous lands must notify the county assessor that the noncontiguous land is part of
3.1the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer
3.2must also notify the assessor of the other county.
3.3(d) (c) Agricultural land used for purposes of a homestead and actively farmed by a
3.4person holding a vested remainder interest in it must be classified as a homestead under
3.5section273.13, subdivision 23 , paragraph (a). If agricultural land is classified class 2a,
3.6any other dwellings on the land used for purposes of a homestead by persons holding
3.7vested remainder interests who are actively engaged in farming the property, and up to
3.8one acre of the land surrounding each homestead and reasonably necessary for the use of
3.9the dwelling as a home, must also be assessed class 2a.
3.10(e) (d) Agricultural land and buildings that were class 2a homestead property under
3.11section273.13, subdivision 23 , paragraph (a), for the 1997 assessment shall remain
3.12classified as agricultural homesteads for subsequent assessments if:
3.13 (1) the property owner abandoned the homestead dwelling located on the agricultural
3.14homestead as a result of the April 1997 floods;
3.15 (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman,
3.16or Wilkin;
3.17 (3) the agricultural land and buildings remain under the same ownership for the
3.18current assessment year as existed for the 1997 assessment year and continue to be used
3.19for agricultural purposes;
3.20 (4) the dwelling occupied by the owner is located in Minnesota and is within 30
3.21miles of one of the parcels of agricultural land that is owned by the taxpayer; and
3.22 (5) the owner notifies the county assessor that the relocation was due to the 1997
3.23floods, and the owner furnishes the assessor any information deemed necessary by the
3.24assessor in verifying the change in dwelling. Further notifications to the assessor are not
3.25required if the property continues to meet all the requirements in this paragraph and any
3.26dwellings on the agricultural land remain uninhabited.
3.27(f) Agricultural land and buildings that were class 2a homestead property under
3.28section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain
3.29classified agricultural homesteads for subsequent assessments if:
3.30(1) the property owner abandoned the homestead dwelling located on the agricultural
3.31homestead as a result of damage caused by a March 29, 1998, tornado;
3.32(2) the property is located in the county of Blue Earth, Brown, Cottonwood,
3.33LeSueur, Nicollet, Nobles, or Rice;
3.34(3) the agricultural land and buildings remain under the same ownership for the
3.35current assessment year as existed for the 1998 assessment year;
4.1(4) the dwelling occupied by the owner is located in this state and is within 50 miles
4.2of one of the parcels of agricultural land that is owned by the taxpayer; and
4.3(5) the owner notifies the county assessor that the relocation was due to a March 29,
4.41998, tornado, and the owner furnishes the assessor any information deemed necessary by
4.5the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
4.6owner must notify the assessor by December 1, 1998. Further notifications to the assessor
4.7are not required if the property continues to meet all the requirements in this paragraph
4.8and any dwellings on the agricultural land remain uninhabited.
4.9(g) Agricultural property of a family farm corporation, joint family farm venture,
4.10family farm limited liability company, or partnership operating a family farm as described
4.11under subdivision 8 shall be classified homestead, to the same extent as other agricultural
4.12homestead property, if all of the following criteria are met:
4.13(1) the property consists of at least 40 acres including undivided government lots
4.14and correctional 40's;
4.15(2) a shareholder, member, or partner of that entity is actively farming the
4.16agricultural property;
4.17(3) that shareholder, member, or partner who is actively farming the agricultural
4.18property is a Minnesota resident;
4.19(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
4.20member, or partner claims another agricultural homestead in Minnesota; and
4.21(5) that shareholder, member, or partner does not live farther than four townships or
4.22cities, or a combination of four townships or cities, from the agricultural property.
4.23Homestead treatment applies under this paragraph for property leased to a family
4.24farm corporation, joint farm venture, limited liability company, or partnership operating a
4.25family farm if legal title to the property is in the name of an individual who is a member,
4.26shareholder, or partner in the entity.
4.27(h) (e) To be eligible for the special agricultural homestead under this subdivision,
4.28an initial full application must be submitted to the county assessor where the property is
4.29located. Owners and the persons who are actively farming the property shall be required
4.30to complete only a one-page abbreviated version of the application in each subsequent
4.31year provided that none of the following items have changed since the initial application:
4.32 (1) the day-to-day operation, administration, and financial risks remain the same;
4.33 (2) the owners and the persons actively farming the property continue to live within
4.34the four townships or city criteria and are Minnesota residents;
4.35 (3) the same operator of the agricultural property is listed with the Farm Service
4.36Agency;
5.1 (4) a Schedule F or equivalent income tax form was filed for the most recent year;
5.2 (5) the property's acreage is unchanged; and
5.3 (6) none of the property's acres have been enrolled in a federal or state farm program
5.4since the initial application.
5.5 The owners and any persons who are actively farming the property must include
5.6the appropriate Social Security numbers, and sign and date the application. If any of the
5.7specified information has changed since the full application was filed, the owner must
5.8notify the assessor, and must complete a new application to determine if the property
5.9continues to qualify for the special agricultural homestead. The commissioner of revenue
5.10shall prepare a standard reapplication form for use by the assessors.
5.11(i) (f) Agricultural land and buildings that were class 2a homestead property under
5.12section273.13, subdivision 23 , paragraph (a), for the 2007 assessment shall remain
5.13classified agricultural homesteads for subsequent assessments if:
5.14 (1) the property owner abandoned the homestead dwelling located on the agricultural
5.15homestead as a result of damage caused by the August 2007 floods;
5.16 (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted,
5.17Steele, Wabasha, or Winona;
5.18 (3) the agricultural land and buildings remain under the same ownership for the
5.19current assessment year as existed for the 2007 assessment year;
5.20 (4) the dwelling occupied by the owner is located in this state and is within 50 miles
5.21of one of the parcels of agricultural land that is owned by the taxpayer; and
5.22 (5) the owner notifies the county assessor that the relocation was due to the August
5.232007 floods, and the owner furnishes the assessor any information deemed necessary by
5.24the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
5.25owner must notify the assessor by December 1, 2008. Further notifications to the assessor
5.26are not required if the property continues to meet all the requirements in this paragraph
5.27and any dwellings on the agricultural land remain uninhabited.
5.28(j) (g) Agricultural land and buildings that were class 2a homestead property under
5.29section273.13, subdivision 23 , paragraph (a), for the 2008 assessment shall remain
5.30classified as agricultural homesteads for subsequent assessments if:
5.31 (1) the property owner abandoned the homestead dwelling located on the agricultural
5.32homestead as a result of the March 2009 floods;
5.33 (2) the property is located in the county of Marshall;
5.34 (3) the agricultural land and buildings remain under the same ownership for the
5.35current assessment year as existed for the 2008 assessment year and continue to be used
5.36for agricultural purposes;
6.1 (4) the dwelling occupied by the owner is located in Minnesota and is within 50
6.2miles of one of the parcels of agricultural land that is owned by the taxpayer; and
6.3 (5) the owner notifies the county assessor that the relocation was due to the 2009
6.4floods, and the owner furnishes the assessor any information deemed necessary by the
6.5assessor in verifying the change in dwelling. Further notifications to the assessor are not
6.6required if the property continues to meet all the requirements in this paragraph and any
6.7dwellings on the agricultural land remain uninhabited.
6.8EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
6.9thereafter.
6.10 Sec. 2. Minnesota Statutes 2012, section 273.124, subdivision 21, is amended to read:
6.11 Subd. 21. Trust property; homestead. Real or personal property held by a trustee
6.12under a trust is eligible for classification as homestead property if the property satisfies the
6.13requirements of paragraph (a), (b), (c), or (d).
6.14 (a) The grantor or surviving spouse of the grantor of the trust occupies and uses the
6.15property as a homestead.
6.16 (b) A relative or surviving relative of the grantor who meets the requirements
6.17of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1,
6.18paragraph (d), in the case of agricultural property, occupies and uses the property as
6.19a homestead.
6.20 (c) A family farm corporation, joint farm venture, limited liability company, or
6.21partnership operating a family farm in which the grantor or the grantor's surviving spouse
6.22is a shareholder, member, or partner rents the property; and, either (1) a shareholder,
6.23member, or partner of the corporation, joint farm venture, limited liability company, or
6.24partnership occupies and uses the property as a homestead; or (2) the property is at least
6.2540 acres, including undivided government lots and correctional 40's, and a shareholder,
6.26member, or partner of the tenant-entity is actively farming the property on behalf of the
6.27corporation, joint farm venture, limited liability company, or partnership.
6.28 (d) A person who has received homestead classification for property taxes payable in
6.292000 on the basis of an unqualified legal right under the terms of the trust agreement to
6.30occupy the property as that person's homestead and who continues to use the property as
6.31a homestead; or, a person who received the homestead classification for taxes payable
6.32in 2005 under paragraph (c) who does not qualify under paragraph (c) for taxes payable
6.33in 2006 or thereafter but who continues to qualify under paragraph (c) as it existed for
6.34taxes payable in 2005.
7.1 For purposes of this subdivision, "grantor" is defined as the person creating or
7.2establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
7.3instrument or through the exercise of a power of appointment.
7.4EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
7.5thereafter.
1.3determinations; amending Minnesota Statutes 2012, section 273.124,
1.4subdivisions 14, 21.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 273.124, subdivision 14, is amended to read:
1.7 Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than
1.8ten acres that is the homestead of its owner must be classified as class 2a under section
1.10 (1) the parcel on which the house is located is contiguous on at least two sides to (i)
1.11agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
1.12Service, or (iii) land administered by the Department of Natural Resources on which in
1.13lieu taxes are paid under sections
1.14 (2) its owner also owns a noncontiguous parcel of agricultural land that is at least
1.1520 acres;
1.16 (3) the noncontiguous land is located not farther than four townships or cities, or a
1.17combination of townships or cities from the homestead; and
1.18 (4) the agricultural use value of the noncontiguous land and farm buildings is equal
1.19to at least 50 percent of the market value of the house, garage, and one acre of land.
1.20 Homesteads initially classified as class 2a under the provisions of this paragraph shall
1.21remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
1.22properties, as long as the homestead remains under the same ownership, the owner owns a
1.23noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
2.1value qualifies under clause (4). Homestead classification under this paragraph is limited
2.2to property that qualified under this paragraph for the 1998 assessment.
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
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2.34and the detached land is located in the same township or city, or not farther than four
2.35townships or cities or combination thereof from the homestead. Any taxpayer of these
2.36noncontiguous lands must notify the county assessor that the noncontiguous land is part of
3.1the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer
3.2must also notify the assessor of the other county.
3.3
3.4person holding a vested remainder interest in it must be classified as a homestead under
3.5section
3.6any other dwellings on the land used for purposes of a homestead by persons holding
3.7vested remainder interests who are actively engaged in farming the property, and up to
3.8one acre of the land surrounding each homestead and reasonably necessary for the use of
3.9the dwelling as a home, must also be assessed class 2a.
3.10
3.11section
3.12classified as agricultural homesteads for subsequent assessments if:
3.13 (1) the property owner abandoned the homestead dwelling located on the agricultural
3.14homestead as a result of the April 1997 floods;
3.15 (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman,
3.16or Wilkin;
3.17 (3) the agricultural land and buildings remain under the same ownership for the
3.18current assessment year as existed for the 1997 assessment year and continue to be used
3.19for agricultural purposes;
3.20 (4) the dwelling occupied by the owner is located in Minnesota and is within 30
3.21miles of one of the parcels of agricultural land that is owned by the taxpayer; and
3.22 (5) the owner notifies the county assessor that the relocation was due to the 1997
3.23floods, and the owner furnishes the assessor any information deemed necessary by the
3.24assessor in verifying the change in dwelling. Further notifications to the assessor are not
3.25required if the property continues to meet all the requirements in this paragraph and any
3.26dwellings on the agricultural land remain uninhabited.
3.27
3.28
3.29
3.30
3.31
3.32
3.33
3.34
3.35
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4.2
4.3
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4.6
4.7
4.8
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4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
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4.21
4.22
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4.24
4.25
4.26
4.27
4.28an initial full application must be submitted to the county assessor where the property is
4.29located. Owners and the persons who are actively farming the property shall be required
4.30to complete only a one-page abbreviated version of the application in each subsequent
4.31year provided that none of the following items have changed since the initial application:
4.32 (1) the day-to-day operation, administration, and financial risks remain the same;
4.33 (2) the owners and the persons actively farming the property continue to live within
4.34the four townships or city criteria and are Minnesota residents;
4.35 (3) the same operator of the agricultural property is listed with the Farm Service
4.36Agency;
5.1 (4) a Schedule F or equivalent income tax form was filed for the most recent year;
5.2 (5) the property's acreage is unchanged; and
5.3 (6) none of the property's acres have been enrolled in a federal or state farm program
5.4since the initial application.
5.5 The owners and any persons who are actively farming the property must include
5.6the appropriate Social Security numbers, and sign and date the application. If any of the
5.7specified information has changed since the full application was filed, the owner must
5.8notify the assessor, and must complete a new application to determine if the property
5.9continues to qualify for the special agricultural homestead. The commissioner of revenue
5.10shall prepare a standard reapplication form for use by the assessors.
5.11
5.12section
5.13classified agricultural homesteads for subsequent assessments if:
5.14 (1) the property owner abandoned the homestead dwelling located on the agricultural
5.15homestead as a result of damage caused by the August 2007 floods;
5.16 (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted,
5.17Steele, Wabasha, or Winona;
5.18 (3) the agricultural land and buildings remain under the same ownership for the
5.19current assessment year as existed for the 2007 assessment year;
5.20 (4) the dwelling occupied by the owner is located in this state and is within 50 miles
5.21of one of the parcels of agricultural land that is owned by the taxpayer; and
5.22 (5) the owner notifies the county assessor that the relocation was due to the August
5.232007 floods, and the owner furnishes the assessor any information deemed necessary by
5.24the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
5.25owner must notify the assessor by December 1, 2008. Further notifications to the assessor
5.26are not required if the property continues to meet all the requirements in this paragraph
5.27and any dwellings on the agricultural land remain uninhabited.
5.28
5.29section
5.30classified as agricultural homesteads for subsequent assessments if:
5.31 (1) the property owner abandoned the homestead dwelling located on the agricultural
5.32homestead as a result of the March 2009 floods;
5.33 (2) the property is located in the county of Marshall;
5.34 (3) the agricultural land and buildings remain under the same ownership for the
5.35current assessment year as existed for the 2008 assessment year and continue to be used
5.36for agricultural purposes;
6.1 (4) the dwelling occupied by the owner is located in Minnesota and is within 50
6.2miles of one of the parcels of agricultural land that is owned by the taxpayer; and
6.3 (5) the owner notifies the county assessor that the relocation was due to the 2009
6.4floods, and the owner furnishes the assessor any information deemed necessary by the
6.5assessor in verifying the change in dwelling. Further notifications to the assessor are not
6.6required if the property continues to meet all the requirements in this paragraph and any
6.7dwellings on the agricultural land remain uninhabited.
6.8EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
6.9thereafter.
6.10 Sec. 2. Minnesota Statutes 2012, section 273.124, subdivision 21, is amended to read:
6.11 Subd. 21. Trust property; homestead. Real or personal property held by a trustee
6.12under a trust is eligible for classification as homestead property if the property satisfies the
6.13requirements of paragraph (a), (b), (c), or (d).
6.14 (a) The grantor or surviving spouse of the grantor of the trust occupies and uses the
6.15property as a homestead.
6.16 (b) A relative or surviving relative of the grantor who meets the requirements
6.17of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1,
6.18paragraph (d), in the case of agricultural property, occupies and uses the property as
6.19a homestead.
6.20 (c) A family farm corporation, joint farm venture, limited liability company, or
6.21partnership operating a family farm in which the grantor or the grantor's surviving spouse
6.22is a shareholder, member, or partner rents the property; and, either (1) a shareholder,
6.23member, or partner of the corporation, joint farm venture, limited liability company, or
6.24partnership occupies and uses the property as a homestead
6.25
6.26
6.27
6.28 (d) A person who has received homestead classification for property taxes payable in
6.292000 on the basis of an unqualified legal right under the terms of the trust agreement to
6.30occupy the property as that person's homestead and who continues to use the property as
6.31a homestead
6.32
6.33
6.34
7.1 For purposes of this subdivision, "grantor" is defined as the person creating or
7.2establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
7.3instrument or through the exercise of a power of appointment.
7.4EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
7.5thereafter.
