Sponsored by:
Senator JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Concerns assessment of farmland for property tax purposes.
CURRENT VERSION OF TEXT
As reported by the Senate Community and Urban Affairs Committee on January 30, 2025, with amendments.
An Act concerning the assessment of land that is in agricultural or horticultural use for property tax purposes and amending P.L.1964, c.48.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 8 of P.L.1964, c.48 (C.54:4-23.8) is amended to read as follows:
8. 1a.1 When land which is in agricultural or horticultural use and is being valued, assessed, and taxed under the provisions of P.L.1964, c.48 (C.54:4-23.1 et seq.), is applied to a use other than agricultural or horticultural, it shall be subject to additional taxes, hereinafter referred to as roll-back taxes[, in an amount]. The mere cessation of agricultural or horticultural activity on the land shall not subject the land to roll-back taxes in the absence of an active conversion of the land to a non-agricultural or non-horticultural use.
Roll-back taxes shall be 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, assessed and taxed as other land in the taxing district, in the current tax year (the year of change in use) and in [such] each of the two tax years immediately preceding, in which the land was valued, assessed and taxed as herein provided.
If the tax year in which a change in use of the land occurs, the land was not valued, assessed, and taxed under P.L.1964, c.48 (C.54:4-23.1 et seq.), then [such] the land shall be subject to roll-back taxes for such of the two tax years, immediately preceding, in which the land was valued, assessed and taxed hereunder.
[Notwithstanding the provisions of any law, rule, or regulation to the contrary, land] Land which is valued, assessed, and taxed under the provisions of P.L.1964, c.48 (C.54:4-23.1 et seq.) [and] shall not be subject to roll-back taxes if it is acquired by: the State, a local government unit, a qualifying tax exempt nonprofit organization, or the Palisades Interstate Park Commission, for recreation and conservation purposes [shall not be subject to roll-back taxes]. As used in this section, "acquired," "local government unit," "qualifying tax exempt nonprofit organization," and "recreation and conservation purposes" mean the same as those terms are defined pursuant to section 3 of P.L.1999, c.152 (C.13:8C-3).
In determining the amounts of the roll-back taxes chargeable on land which has undergone a change in use, the assessor shall for each of the roll-back tax years involved, ascertain:
(a) The full and fair value of such land under the valuation standard applicable to other land in the taxing district;
(b) The amount of the land assessment for the particular tax year by multiplying such full and fair value by the county percentage level, as determined by the county board of taxation in accordance with section 3 of P.L.1960, c.51 (C.54:4-2.27);
(c) The amount of the additional assessment on the land for the particular tax year by deducting the amount of the actual assessment on the land for that year from the amount of the land assessment determined under (b) hereof; and
(d) The amount of the roll-back tax for that tax year by multiplying the amount of the additional assessment determined under (c) hereof by the general property tax rate of the taxing district applicable for that tax year.
1b. Notwithstanding the provisions of subsection a. of this section or section 5 of P.L.1964, c.48 (C.54:4-23.5) to the contrary, an owner of land that is subject to valuation, assessment, and taxation pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.) may petition the assessor of the taxing district in which the land is located to request a hardship exemption from the provisions of subsection a. of this section, for land that is not actively devoted to agricultural or horticultural use, or that is applied to a use other than agricultural or horticultural use, which would otherwise be subject to roll-back taxes pursuant to subsection a. of this section. The assessor shall prepare guidance containing the assessor’s requirements for the contents of an owner’s hardship petition. The assessor shall, for all land within the taxing district that is subject to valuation, assessment, and taxation pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.), distribute the guidance to an owner of land at least 90 days prior to the date that an application pursuant to section 2 of P.L.1986, c.201 (C.54:4-23.3a) is due. Thereafter, the assessor shall distribute the guidance to an owner of land that is subject to valuation, assessment, and taxation pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.) no later than 30 days after the assessor’s decision to approve an application pursuant to subsections c. or d. of section 2 of P.L.1986, c.201 (C.54:4-23.3a). In considering whether to grant a hardship petition, the tax assessor shall consider the following factors, of which no one factor shall be alone dispositive:
(a) the nature of the hardship upon which the owner is seeking relief;
(b) the intent of the owner to return the land to agricultural or horticultural use;
(c) the duration of the hardship sought;
(d) relevant case law, which does not conflict with the provisions of this section;
(e) the actual use of the property, and whether the actual use, considered in conjunction with the landlord’s proffered intent, demonstrates an intent to return the land to agricultural or horticultural use, or whether the actual use indicates that agricultural or horticultural activities have been abandoned or are willfully delayed; and
(f) actions taken by the owner, related to agricultural or horticultural use, during the tax year or the two tax years preceding either the events giving rise to the hardship petition or date the owner submitted the hardship petition.
The owner shall submit the hardship petition pursuant to this subsection to the assessor of the taxing district in which the land is situated on or before August 1 or September 1, if an extension of time has been granted by the assessor pursuant to section 6 of P.L.1964, c.48 (C.54:4-23.6), of the year immediately preceding the tax year for which such valuation, assessment and taxation are sought. The assessor may grant or deny the hardship petition, condition the assessor’s decision on the continued production of certain proofs or documents, and determine the length of the hardship exemption, if granted.1
(cf: P.L.2001, c.312, s.2)
2. This act shall take effect immediately.