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SF 2665

Entity-owned agricultural property shareholder limit increase

2025-2026 Regular Session Introduced by Jeff Howe and 1 co-sponsor

SF 2665: Entity-owned Agricultural Property Shareholder Limit Increase SummaryThis bill, titled "Entity-owned agricultural property shareholder limit increase", seeks to raise the

Referred to Taxes
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Bill Summary · SF 2665

SF 2665: Entity-owned Agricultural Property Shareholder Limit Increase

Summary

This bill, titled "Entity-owned agricultural property shareholder limit increase", seeks to raise the shareholder limit for entities that own agricultural property in the state. The main purpose is to provide more flexibility for family farms and other agricultural operations organized as business entities.

Key Provisions

  • Increases the maximum number of shareholders or members allowed for an entity that owns agricultural property from 5 to 10.
  • This change would apply to corporations, limited liability companies, partnerships, and other legal entities that own or operate agricultural land and assets.
  • The bill maintains the existing requirement that at least one shareholder or member must be a farmer actively engaged in the day-to-day operations of the agricultural enterprise.

Impact

  • This legislation is aimed at supporting family farms and other agricultural businesses structured as entities rather than sole proprietorships.
  • By raising the shareholder limit, it gives these operations more flexibility to involve additional family members or investors without losing their eligibility for certain agricultural property tax classifications and benefits.
  • The change could make it easier for family farms to pass ownership to the next generation or bring on new partners, while still retaining their agricultural tax status.
  • Agricultural groups have advocated for this bill as a way to modernize entity ownership rules and better accommodate the evolving nature of family farming and corporate agricultural structures.

Timeline

  • The bill was introduced in the state Senate on March 17, 2025 and has been referred to the Taxes committee for further consideration.
  • If passed by the legislature and signed into law, the new shareholder limit would take effect for the next tax year.

Compiled from official sources — confirm details with the bill’s official record.

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