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S.F. No. 1499 - Modifying Agricultural Homestead Determinations
 
Author: Senator Rod Skoe
 
Prepared By: Eric S. Silvia, Senate Counsel (651/296-1771)
 
Date: April 8, 2013



 

S.F. 1499 modifies agricultural homestead determinations by removing several special provisions which granted homestead status to property owned by entities or persons not actually living on the farm. An obsolete provision allowing continued homestead classification in certain counties relating to a 1998 tornado is removed.

Section 1 [Special Provisions] removes homestead classification in the following instances:

  1. Property that is owned by a natural person but is actively farmed by (1) a sibling, child, or grandchild of the owner or owner’s spouse or (2) a qualified person of an authorized entity, but neither the owner nor the person actively farming actually lives on the property. Current law allows homestead status if the owner or person actively farming lives within four cities or townships of the property.
  2. Property owned by an authorized entity, rather than a natural person, but the qualified person of the authorized entity that is actively farming the land does not physically live on the property. Current law allows homestead status in this instance if the qualified person of the authorized entity owning the property is actively farming the property on behalf of the authorized entity and the qualified person lives within four cities or townships of the property.

Section 2 [Trust Property; Homestead] removes homestead classification for certain property held under a trust. Current law allowing homestead classification for property physically occupied by a qualifying relative of the granter is stricken. Also, homestead classification for property rented by an authorized entity of which the grantor or grantor’s surviving spouse if a shareholder, member of partner in a trust is also stricken.

Effective for taxes payable in 2014 and thereafter.

 

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