From staff reports

State lawmakers have passed legislation extending the homestead classification of certain farmland not immediately adjacent to an owner’s place of residence.

Saturday, December 11, 1999

State lawmakers have passed legislation extending the homestead classification of certain farmland not immediately adjacent to an owner’s place of residence.

The classification was made for those farmers who live on the land that they farm, but now because of the change, those who actively farm who may rent can also qualify and receive a reduction in their property taxes.

&uot;This is breaking new ground for us,&uot; said John Yost of the Freeborn County Assessor’s office. &uot;Before we were able to track who owned property and how much they were taxed and the tax breaks they were entitled to. But now, the same tax breaks have been extended to people who rent the land they work on.&uot;

The new law affects farmland that is not immediately adjacent to the owner’s residence if it consists of at least 40 acres.

It will be considered a homestead like other agricultural homesteads if all of the following are met:

* The owner is actively farming the agricultural property;

* The owner is a Minnesota resident;

* The owner or spouse do not claim another agricultural Minnesota homestead;

* and, the owner does not live farther than four townships or cities, or a combination of four townships or cities from the agricultural property.

&uot;Actively farming&uot; is further defined as participating in day-to-day farm decisions, including labor, administration and management. They must also assume all or a portion of the financial risks and participate in any profits or losses, own the land in question, have at least 40 acres and meet the definition of agricultural property under state law.

Under the new law, qualified applicants may receive an agricultural homestead on their farmland even if they live in an apartment, a rental home, a manufactured home park, a condominium or a cooperative.

Depending on local levies, property taxes can be approximately $20 an acre. With the homestead classification, farmers pay between $8-$12 an acre, Yost said.

The new legislation is effective beginning with the 1999 assessment, payable in 2000 and thereafter. If a farmer qualifies, he must apply at the county assessor’s office before Dec. 31. Questions may be answered at the assessor’s office. The law does not affect farmers who already qualify for the homestead act under the old law.