Entity-owned agricultural property shareholder limit increase

Minnesota Senate File 2665 amends Minnesota tax law to increase the shareholder limit for agricultural entities seeking homestead tax classification. It directly affects family farm corporations, partnerships, and limited liability companies that own agricultural property and wish to qualify for reduced tax rates (class 1b or 2a). The bill raises the current cap on related shareholders, members, or partners (previously limited to 12) to allow larger family-owned agricultural entities to maintain tax benefits when a qualifying family member resides on and farms the land. This change applies to properties classified under homestead tax rules for agricultural use, effective for 2025 tax assessments.