A2944

An Act concerning farmland assessment eligibility 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 the provisions of any other law, rule, or regulation to the contrary, five or more noncontiguous acres of land that are actively devoted to agricultural or horticultural use and that 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.), so long as: at least three acres are contiguous; and the noncontiguous acres are under the ownership of one person, and meet all other requirements of P.L.1964, c.48 (C.54:4-23.1 et seq.).

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 land meets all requirements of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(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] P.L.1964, c.48 (C.54:4-23.1 et seq.) 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 meets all 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 provides that five or more noncontiguous acres of land, that are actively devoted to agricultural or horticultural use and that 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 if: there are at least three contiguous acres and the noncontiguous acres are under the ownership of one person, and meet the other requirements enumerated under current law.

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, all five acres would not be required to be contiguous, so long as there are three acres of contiguous land and the noncontiguous acres are under the ownership of one person. This would allow a landowner of farmland smaller than five acres in size to combine their noncontiguous farmland owned in order to receive farmland assessment. All other requirements for eligibility for farmland assessment would apply. This bill is intended to combat over development and high costs of property in the State.