ASSEMBLY CONCURRENT RESOLUTION No. 47

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblyman LANCE

 

 

A Concurrent Resolution proposing to amend Article VIII, Section I, paragraph 1 of the Constitution of the State of New Jersey.

 

Whereas, Agriculture contributes significantly to the State's economy, employing over 20,000 workers directly and tens of thousands of workers indirectly; and

Whereas, Not only is the agricultural sector an important employer in the State, but it is closely interconnected with the State's huge agribusiness and food complex which generates annually over $54 billion in sales and $4.5 billion in wages; and

Whereas, In addition to its substantial contributions to employment and to the State economy overall, New Jersey agriculture and farmland make substantial quality of life contributions by providing open space, clean air, environmental resources and wildlife habitats; and

Whereas, New Jersey's agricultural industry has been impacted in recent years by declining profitability and lack of competitiveness, combined with increasing development pressures, all of which threaten the long-term sustainability of agriculture in this State; and

Whereas, In light of these trends, it is critical that the State legislature recognize the financial pressures on those engaged in full-time agricultural and horticultural production and take whatever measures are within State legislative purview to encourage the sustenance of agriculture and horticulture, including monitoring and refining the farmland assessment program in order to assure that it facilitates an economically viable and sustainable New Jersey agriculture; and

Whereas, To the extent that entire municipalities benefit from the presence of operating farms for the reasons enunciated above, and that current programs designed to preserve farmland which rely on the reservation of development rights for an eight-year program have not been successful because of insufficient financial incentives, it is vital that the Legislature provide municipalities with the opportunity to extend farmland assessment, which has successfully kept thousands of acres in agricultural and horticultural production since the early 1960's, to include the land under and around the farmhouse in accordance with prevailing farmland assessment rates for owner-operated and occupied farms which are deed restricted for an eight-year period, in order to increase the financial incentives necessary to allow for sustainable agricultural and horticultural production on family farms; now, therefore,

 

    Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

 

    1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

 

PROPOSED AMENDMENT

 

    Amend Article VIII, Section I, paragraph 1 to read as follows:

    1. (a) Property shall be assessed for taxation under general laws and by uniform rules. All real property assessed and taxed locally or by the State for allotment and payment to taxing districts shall be assessed according to the same standard of value, except as otherwise permitted herein, and such real property shall be taxed at the general tax rate of the taxing district in which the property is situated, for the use of such taxing district.

    (b) The Legislature shall enact laws to provide that the value of land, not less than 5 acres in area, which is determined by the assessing officer of the taxing jurisdiction to be actively devoted to agricultural or horticultural use and to have been so devoted for at least the 2 successive years immediately preceding the tax year in issue, shall, for local tax purposes, on application of the owner, be that value which such land has for agricultural or horticultural use.

    The Legislature shall enact laws under which municipalities may adopt ordinances providing that, on the application of the owner, the value for local tax purposes of land that is associated with a dwelling house and farm buildings and is a constituent part of land that has been valued at the value the land has for agricultural or horticultural use, shall be that value which the land would otherwise have for agricultural or horticultural use, provided that: the dwelling house is occupied by the owner; the owner operates the property of which the land associated with the dwelling house and farm buildings is a constituent part for active agricultural or horticultural use; the owner has agreed to retain the property in agricultural or horticultural production for a minimum period of eight years; and other standards contained in a municipal ordinance have been met, which standards shall be prescribed by the Legislature to effectuate the purposes of this paragraph.

    Any such laws shall provide that when land which has been valued in this manner for local tax purposes is applied to a use other than for agriculture or horticulture it shall be subject to additional taxes in an amount equal to the difference, if any, between the taxes paid or payable on the basis of the valuation and the assessment authorized hereunder and the taxes that would have been paid or payable had the land been valued and assessed as otherwise provided in this Constitution, in the current year and in such of the tax years immediately preceding, not in excess of 2 such years in which the land was valued as herein authorized.

     Such laws shall also provide for the equalization of assessments of land valued in accordance with the provisions hereof and for the assessment and collection of any additional taxes levied thereupon and shall include such other provisions as shall be necessary to carry out the provisions of this amendment.

(cf: Art.VIII, Sec.I, par.1 amended effective December 5, 1963.)

 

    2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

 

    3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

    There shall be printed on each official ballot to be used at the general election, the following:

    a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:

    If you favor the proposition printed below make a cross (X), plus (+) or check () in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check () in the square opposite the word "No."

    b. In every municipality the following question:





 

 

AUTHORIZES MUNICIPALITIES TO GRANT FARMLAND ASSESSMENT TREATMENT TO LAND ASSOCIATED WITH FARMHOUSES AND FARM BUILDINGS.


















 

YES

Shall the amendment to Article VIII, Section I, paragraph 1 of the Constitution, agreed to by the Legislature, and requiring the Legislature to authorize municipalities to adopt ordinances providing that the value for local tax purposes of land that is associated with a dwelling house and farm buildings and is a constituent part of land that has been valued at the value the land has for agricultural or horticultural use, shall be the value which the land has for agricultural or horticultural use, provided that: the dwelling house is occupied by the owner; the owner operates the property of which the land associated with the dwelling house and farm buildings is a constituent part for active agricultural or horticultural use; the owner has agreed to retain the property in agricultural or horticultural production for a minimum period of eight years; and other standards contained in a municipal ordinance have been met, which standards shall be prescribed by the Legislature to effectuate the purposes of this paragraph, be approved?

 

 

INTERPRETIVE STATEMENT



















 

NO

This proposed amendment would require the Legislature to permit municipalities to adopt ordinances that would value land that is associated with a dwelling house and farm buildings and is a constituent part of land that has received a farmland assessment, at the value the land would have for agricultural or horticultural purposes, as long as certain conditions are met. These conditions are: (1) the dwelling house is occupied by the owner; (2) the owner operates the property of which the land associated with the dwelling house and farm buildings is a constituent part for active agricultural or horticultural purposes; (3) the owner has agreed to retain the property in agricultural or horticultural production for at least eight years; and (4) other standards contained in a municipal ordinance have been met, which standards are to be prescribed by the Legislature to effectuate the purposes of this paragraph. Under current law, land that is associated with a dwelling house and farm buildings and is a constituent part of land that has received a farmland assessment, is valued at full market value.

 


STATEMENT

 

    This proposed amendment to the Constitution would require the Legislature to permit municipalities to adopt ordinances that would value land that is associated with a dwelling house and farm buildings and is constituent part of land that has received a farmland assessment for local tax purposes, at the value the land has for agricultural or horticultural purposes, under certain circumstances. These circumstances are: (1) the dwelling house is occupied by the owner; (2) the owner operates the property of which the land associated with the dwelling house and farm buildings is a constituent part for agricultural or horticultural purposes; (3) the owner has agreed to retain the property in agricultural or horticultural production for at least eight years; and (4) other standards contained in a municipal ordinance have been met, which standards shall be prescribed by the Legislature to effectuate the purposes of this paragraph. Under current law, land that is associated with a dwelling house and farm buildings and is a constitutent part of land that has received a farmland assessment, is valued at full market value.

 

 

 

Proposes constitutional amendment to permit municipalities to extend farmland assessment under certain circumstances.