[First Reprint]

ASSEMBLY, No. 1438

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 5, 1996

 

 

By Assemblymen GIBSON and BODINE

 

 

An Act concerning appraisals of farmland in the pinelands area for farmland preservation purposes, and amending P.L.1983, c.32 and P.L.1988, c.4.

 

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

 

    1. Section 24 of P.L.1983, c.32 (C.4:1C-31) is amended to read as follows:

    24. a. Any landowner applying to the board to sell a development easement pursuant to section 17 of this act shall offer to sell the development easement at a price which, in the opinion of the landowner, represents a fair value of the development potential of the land for nonagricultural purposes, as determined in accordance with the provisions of this act.

    b. Any offer shall be reviewed and evaluated by the board and the committee in order to determine the suitability of the land for development easement purchase. Decisions regarding suitability shall be based on the following criteria:

    (1) Priority consideration shall be given, in any one county, to offers with higher numerical values obtained by applying the following formula:

 

     nonagricultural - agricultural - landowner's

     developmental value value asking price

     .........................................................................

                nonagricultural - agricultural

               development value value

 

    (2) The degree to which the purchase would encourage the


 survivability of the municipally approved program in productive agriculture; and

    (3) The degree of imminence of change of the land from productive agriculture to nonagricultural use.

    The board and the committee shall reject any offer for the sale of development easements which is unsuitable according to the above criteria and which has not been approved by the board and the municipality.

    c. (1) Two independent appraisals paid for by the board shall be conducted for each parcel of land so offered and deemed suitable. The appraisals shall be conducted by independent, professional appraisers selected by the board and the committee from among members of recognized organizations of real estate appraisers. The appraisals shall determine the current overall value of the parcel for nonagricultural purposes, as well as the current market value of the parcel for agricultural purposes. The difference between the two values shall represent an appraisal of the value of the development easement.

    (2) The value 1[per acre]1 of a development easement on a parcel of land located in 1either an Agricultural Production Area or in a Special Agricultural Production Area designated pursuant to N.J.A.C. 7:50-5.1 et seq. in1 the pinelands area as defined pursuant to section 3 of P.L.1979, c.111 (C.13:18A-3) shall be 1[based upon the total cost divided by the total acreage of development easement purchases on lands located outside of the pinelands area pursuant to the "Agriculture Retention and Development Act," P.L.1983, c.32 (C.4:1C-11 et seq.) in the counties of Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and Salem, in the two years immediately preceding the year in which the application is made to the committee] determined based upon the difference between the current overall value of the parcel and the lowest range of values for land in agricultural or horticultural use as determined by the State Farmland Evaluation Advisory Committee pursuant to section 20 of P.L.1964, c.48 (C.54.4-23.20) for the appropriate classification of land for the area of the State in which the land is located1 ; unless the value established pursuant to paragraph (1) of this subsection is greater, in which case that value shall be utilized.

    (3) If Burlington County or a municipality therein has established a development transfer bank pursuant to the provisions of P.L.1989, c.86 (C.40:55D-113 et seq.), the municipal average of the value of the development potential of property in a sending zone established by the bank may be the value used by the board in determining the value of the development easement.

    (4) If a development easement is purchased using moneys appropriated from the fund, the State shall provide no more than 80%, except 100% under emergency conditions specified by the committee pursuant to rules or regulations, of the cost of the appraisals conducted pursuant to this section.

    d. Upon receiving the results of the appraisals made pursuant to paragraph (1) of subsection c. of this section or the calculations made pursuant to paragraph (2) of subsection c. of this section , or in Burlington county or a municipality therein where a municipal average has been established under P.L.1989, c.86 (C.40:55D-113 et seq.), upon receiving an application from the landowners, the board and the committee shall compare the [appraised] value determined pursuant to paragraphs (1) or (2) of subsection c. of this section , or the municipal average, as the case may be, and the landowner's offer and, pursuant to the suitability criteria established in subsection b. of this section:

    (1) Approve the application to sell the development easement and rank the application in accordance with the criteria established in subsection b. of this section; or

    (2) Disapprove the application, stating the reasons therefor.

    e. Upon approval by the committee and the board, the secretary is authorized to provide the board, within the limits of funds appropriated therefor, an amount equal to no more than 80%, except 100% under emergency conditions specified by the committee pursuant to rules or regulations, of the purchase price of the development easement, as determined pursuant to the provisions of this section. The board shall provide its required share and accept the landowner's offer to sell the development easement. The acceptance shall cite the specific terms, contingencies and conditions of the purchase.

    f. The landowner shall accept or reject the offer within 30 days of receipt thereof. Any offer not accepted within that time shall be deemed rejected.

    g. Any landowner whose application to sell a development easement has been rejected for any reason other than insufficient funds may not reapply to sell a development easement on the same land within two years of the original application.

    h. No development easement shall be purchased at a price greater than the [appraised] value determined pursuant to paragraphs (1) or (2) of subsection c. of this section or the municipal average, as the case may be.

    i. The appraisals conducted pursuant to this section or the fair market value of land restricted to agricultural use shall not be used to increase the assessment and taxation of agricultural land pursuant the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).

(cf: P.L.1989, c.86, s.15)

 

    2. Section 5 of P.L.1988, c.4 (C.4:1C-31.1) is amended to read as follows:

    5. a. Any landowner of farmland within an agricultural development area certified by the committee may apply to the committee to sell the fee simple absolute title at a price which, in the opinion of the landowner, represents a fair market value of the property.

    b. The committee shall evaluate the offer to determine the suitability of the land for purchase. Decisions regarding suitability shall be based on the eligibility criteria for the purchase of development easements listed in subsection b. of section 24 of P.L. 1983, c.32 (C. 4:1C-31) and the criteria adopted by the committee and the board of that county. The committee shall also evaluate the offer taking into account the amount of the asking price, the asking price relative to other offers, the location of the parcel relative to areas targeted within the county by the board and among the counties, and any other criteria as the committee has adopted pursuant to rule or regulation. The committee may negotiate reimbursement with the county and include the anticipated reimbursement as part of the evaluation of an offer.

    c. The committee shall rank the offers according to the criteria to determine which, if any, should be appraised. The committee shall reject any offer for the purchase of fee simple absolute title determined unsuitable according to any criterion in this subsection or adopted pursuant to this subsection, or may defer decisions on offers with a low ranking. The committee shall state, in writing, its reasons for rejecting an offer.

    d. Appraisals of the parcel shall be conducted to determine the fair market value according to procedures adopted by regulation by the committee. The value per acre of a parcel of farmland located in the pinelands area as defined pursuant to section 3 of P.L.1979, c.111 (C.13:18A-3) shall be based upon the total cost divided by the total acreage of farmland purchased in fee simple 1located1 outside of the pinelands area in the counties of Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and Salem 1and in the pinelands area outside of either an Agricultural Production Area or a Special Agricultural Production Area designated pursuant to N.J.A.C. 7:50-5.1 et seq1 , in the two years immediately preceding the year in which the application is made to the committee, unless the average value per acre of farmland purchased in fee simple in the pinelands area in those counties in that two-year period is greater, in which case that value shall be utilized.

    e. The committee shall notify the landowner of the fair market value and negotiate for the purchase of the title in fee simple absolute.

    f. Any land acquired by the committee pursuant to the provisions of this amendatory and supplementary act shall be held of record in the name of the State and shall be offered for resale by the State, notwithstanding any other law, rule or regulation to the contrary, within a reasonable time of its acquisition with agricultural deed restrictions for farmland preservation purposes as determined by the committee pursuant to the provisions of this act.

    g. The committee shall be responsible for the operation and maintenance of lands acquired and shall take all reasonable steps to maintain the value of the land and its improvements.

    h. To the end that municipalities may not suffer loss of taxes by reason of acquisition and ownership by the State of New Jersey of property under the provisions of this act, the State shall pay annually on October 1 to each municipality in which property is so acquired and has not been resold a sum of money equal to the tax last assessed and last paid by the taxpayer upon this land and the improvement thereon for the taxable year immediately prior to the time of its acquisition. In the event that land acquired by the State pursuant to this act had been assessed at an agricultural and horticultural use valuation in accordance with provisions of the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.), at the time of its acquisition by the State, no rollback tax pursuant to section 8 of P.L.1964, c.48 (C.54:4-23.8) shall be imposed as to this land nor shall this rollback tax be applicable in determining the annual payments to be made by the State to the municipality in which this land is located.

    All sums of money received by the respective municipalities as compensation for loss of tax revenue pursuant to this section shall be applied to the same purposes as is the tax revenue from the assessment and collection of taxes on real property of these municipalities, and to accomplish this end the sums shall be apportioned in the same manner as the general tax rate of the municipality for the tax year preceding the year of receipt.

(cf: P.L.1988, c.4, s.5)

 

    3. This act shall take effect immediately.

 

 

 

Prescribes method for appraising farmland in pinelands area for farmland preservation purposes.