A5474

An Act concerning farmland assessment, and supplementing and amending P.L.1964, c.48.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) Notwithstanding any other provision of law or rule or regulation adopted pursuant thereto to the contrary, five or more noncontiguous acres of land, which are actively devoted to agricultural or horticultural use and which have been so devoted for at least the two successive years immediately preceding the tax year in issue, may be eligible for the valuation and assessment of land in agricultural or horticultural use pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.), provided that: the noncontiguous acres are under the ownership of one person; are located in the same municipality; and meet all other requirements of P.L.1964, c.48 (C.54:4-23.1).

2. Section 2 of P.L.1964, c.48 (C.54:4-23.2) is amended to read as follows:

2. For general property tax purposes, the value of land, not less than [5] five acres in area, which is actively devoted to agricultural or horticultural use and which has been so devoted for at least the [2] two successive years immediately preceding the tax year in issue, shall, on application of the owner, and approval thereof as hereinafter provided, be that value which such land has for agricultural or horticultural use. Noncontiguous acres of land may be valued as land for agricultural or horticultural use pursuant to this section provided that the requirements of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) are met.

(cf: P.L.1964, c.48, s.2)

3. Section 6 of P.L.1964, c.48 (C.54:4-23.6) is amended to read as follows:

6. Land which is actively devoted to agricultural or horticultural use shall be eligible for valuation, assessment and taxation as herein provided when it meets the following qualifications:

(a) It has been so devoted for at least the two successive years immediately preceding the tax year for which valuation under this act is requested;

(b) The area of such land is not less than five acres when measured in accordance with the provisions of section 11 [hereof] of P.L.1964. c.48 (C.54:4-23.11) and, if located on noncontiguous acres, the land also meets the requirements of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(c) Application by the owner of such land for valuation hereunder is submitted on or before August 1 of the year immediately preceding the tax year to the assessor of the taxing district in which such land is situated on the form prescribed by the Director of the Division of Taxation in the Department of the Treasury;

(d) The assessor may grant an extension of time for filing an application required by this section, which extension shall terminate no later than September 1 of the year immediately preceding the tax year, in any event where it shall appear to the satisfaction of the assessor that failure to file by August 1 was due to (1) the illness of the owner and a certificate of a physician stating that the owner was physically incapacitated and unable to file on or before August 1 and the application is filed with the assessor; or (2) the death of the owner or an immediate member of the owner's family and a certified copy of the death certificate and the application is filed with the assessor by the individual legally responsible for the estate of the owner, or the owner, as the case may be.

As used in this [act] P.L.1964, c.48 (C.54:4-23.1 et seq.), "immediate family member" means a person's spouse, child, parent or sibling residing in the same household.

(cf: P.L.1987, c.418, s.1)

4. This act shall take effect immediately.

STATEMENT

This bill amends and supplements the “Farmland Assessment Act (1964),” P.L.1964, c.48 (C.54:4-23.1 et seq.), to provide that five or more noncontiguous acres of land, which are actively devoted to agricultural or horticultural use and which have been in such use for at least the two successive years immediately preceding the tax year in issue, may be eligible for the valuation and assessment of land in agricultural or horticultural use, i.e., farmland assessment, provided that the noncontiguous acres are under the ownership of one person, are located in the same municipality, and meet the other requirements of the Farmland Assessment Act.

Under current law and regulation, in order to be eligible for farmland assessment, a minimum of five contiguous acres of land is required to be actively devoted to agricultural or horticultural use. Under this bill, the land would not be required to be contiguous, provided that it is under the ownership of one person and located within one municipality. This would allow a landowner of farmland smaller than five acres in size to combine their noncontiguous farmland owned in the same municipality in order to receive farmland assessment. All other requirements for eligibility for farmland assessment would apply.

Furthermore, this bill would bolster agriculture and horticulture in the more developed parts of the State where it is challenging, if not impossible, to devote contiguous acres to agricultural or horticultural purposes. New Jersey, as the most densely populated state in the nation, is highly urbanized and suburbanized with limited opportunities to use its smaller pockets of open space for agriculture and horticulture. Also, the high cost of land in urban areas make the purchase of large single plots prohibitive. Increasing the acreage eligible for farmland assessment would also increase inclusion of a more diverse group of people interested in contributing to the State’s agricultural and horticultural sectors, and would support the Vision 2025 plan developed by the New Jersey Agricultural Experiment Station at Rutgers, the State University.

The New Jersey Agricultural Experiment Station’s Vision 2025 plan is a system of responsive, innovative, and inclusive programs, farms, stations, and centers that is prioritizing investments in infrastructure, information technology, and equipment designed to enable the expansion and development of cutting-edge programs. The New Jersey Agricultural Experiment Station programs, farms, stations, and centers are designed to be national models of responsive, innovative, and inclusive research, education, and outreach that can address grand challenges of the State and broader society, as well as being known for the sustainable management of the land and natural resources these efforts encompass.