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HF 3984

Property taxes; qualified relatives for special agricultural homestead expanded.

2025-2026 Regular Session Introduced by Jeff Backer

Expands who qualifies as a “qualified relative” for the special agricultural homestead, broadening eligibility for lower property tax relief for farm households.

Introduction and first reading, referred to Taxes
#agricultureandagriculturedepartment #taxation-property
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WeVote Research Nonpartisan
Bill Summary · HF 3984

Summary of HF 3984 (2025-2026) – Minnesota: Property Taxes; Qualified Relatives for Special Agricultural Homestead Expanded

Overview

HF 3984 seeks to modify Minnesota property tax provisions related to special agricultural homesteads by expanding who qualifies as a “qualified relative” for eligibility. The bill is introduced in the 2025-2026 session and referred to the House Taxes Committee. It has one named sponsor, along with a co-sponsor (Jeff Backer).

Purpose and intent

  • The primary purpose is to broaden eligibility for the special agricultural homestead property tax classification by expanding the pool of individuals who can be considered a “qualified relative.”
  • The aim appears to be relief from property tax burden for families and relatives who participate in farming operations and reside on or together with farmland, thereby enhancing farm succession and stability.

Key provisions (proposed changes)

  • Expansion of “qualified relative” criteria: The bill broadens who can be treated as a relative for purposes of qualifying for the special agricultural homestead classification.
  • Eligibility implications: By widening the pool of qualifying relatives, more farm households may qualify for the tax treatment designated for special agricultural homesteads.
  • Relationship and residency considerations: The statute would specify or clarify the relationships that are eligible (e.g., immediate family members, in-laws, or other defined relatives) and the residency or farm-operating requirements tied to the homestead designation.

Note: The bill as introduced and referred to committee does not list all granular definitional changes (e.g., exact relative categories, ownership thresholds, or occupancy requirements). The detailed language in the bill would define:
- Which relatives qualify (e.g., parents, children, siblings, spouses, in-laws, or extended relatives within a certain degree)
- Any caps on combined property value or acres that affect eligibility
- Compliance requirements for maintaining the special agricultural homestead status
- Administrative processes for certification and re-certification

Affected parties and practical impact

  • Primary beneficiaries: Farm families and households that qualify under the expanded definition of “qualified relative” for the special agricultural homestead property tax classification.
  • Property owners: Individuals who meet the revised criteria could receive lower taxable value assessments or tax relief associated with the special classification.
  • Local taxing authorities: Assessors and county auditors would implement and administer the changes in eligibility and certification procedures.
  • Agricultural community: Potential broader access to tax relief could influence farm persistence, succession planning, and cost of farming operations.

Procedural and timeline aspects

  • Introduction and first reading occurred on March 5, 2026, with referral to the Taxes committee.
  • As introduced, the bill would proceed through the standard committee process (markup, potential amendments) before consideration on the House floor, followed by potential Senate action and governor assent.

Notes for readers

  • The summary reflects the bill’s stated aim to expand the “qualified relative” eligibility for the special agricultural homestead classification.
  • For precise statutory language, specific definitions of “qualified relative,” and any numeric thresholds (e.g., acreage, ownership shares, or income limits), the bill’s text and any accompanying analysis would need to be reviewed as it progresses through the legislative process.

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

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