Bill Text: NJ S3197 | 2014-2015 | Regular Session | Introduced
Bill Title: Provides automatic farmland assessment for owners of permanently preserved farmland.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-10-19 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S3197 Detail]
Download: New_Jersey-2014-S3197-Introduced.html
Sponsored by:
Senator JEFF VAN DREW
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Provides automatic farmland assessment for owners of permanently preserved farmland.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning farmland assessment, and amending P.L.1964, c.48 and P.L.1971, c.400.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1964, c.48 (C.54:4-23.3) is amended to read as follows:
3. Land shall be deemed to be in agricultural use when devoted to the production for sale of plants and animals useful to man, including but not limited to: forages and sod crops; grains and feed crops; dairy animals and dairy products; poultry and poultry products; livestock, including beef cattle, sheep, swine, horses, ponies, mules or goats, including the breeding, boarding, raising, rehabilitating, training or grazing of any or all of such animals, except that "livestock" shall not include dogs; bees and apiary products; fur animals; trees and forest products; when the land is preserved farmland; or when devoted to and meeting the requirements and qualifications for payments or other compensation pursuant to a soil conservation program under an agreement with an agency of the federal government, except that land which is devoted exclusively to the production for sale of tree and forest products, other than Christmas trees, or devoted as sustainable forestland, and is not appurtenant woodland, shall not be deemed to be in agricultural use unless the landowner fulfills the following additional conditions:
a. The landowner establishes and complies with the provisions of a forest stewardship plan for this land, approved by the Department of Environmental Protection pursuant to section 3 of P.L.2009, c.256 (C.13:1L-31), or a woodland management plan for this land, prepared in accordance with policies, guidelines and practices approved by the Division of Parks and Forestry in the Department of Environmental Protection, in consultation with the Department of Agriculture and the Dean of Cook College at Rutgers, The State University, which policies, guidelines and practices are designed to eliminate excessive and unnecessary cutting;
b. The landowner, and a forester from a list of foresters approved by the Department of Environmental Protection or other professional from a list of other professionals authorized by the department in consultation with the forest stewardship advisory committee established pursuant to section 8 of P.L.2009, c.256 (C.13:1L-36), annually attest to compliance with subsection a. of this section; and
c. The landowner annually submits an application, as prescribed in section 13 of P.L.1964, c.48 (C.54:4-23.13), to the assessor, accompanied by a copy of the plan established pursuant to subsection a. of this section; written documentation of compliance with subsection b. of this section; a supplementary woodland data form setting forth woodland management actions taken in the pre-tax year, the type and quantity of tree and forest products sold, and the amount of income received or anticipated for same; a map of the land showing the location of the activity and the soil group classes of the land; and other pertinent information required by the Director of the Division of Taxation as part of the application for valuation, assessment and taxation, as provided in P.L.1964, c.48 (C.54:4-23.1 et seq.). The landowner shall, at the same time, submit to the Commissioner of the Department of Environmental Protection an exact copy of the application and accompanying information submitted to the assessor pursuant to this subsection. For the purposes of this amendatory and supplementary act, "appurtenant woodland" means a wooded piece of property which is contiguous to, part of, or beneficial to a tract of land, which tract of land has a minimum area of at least five acres devoted to agricultural or horticultural uses other than the production for sale of trees and forest products, exclusive of Christmas trees, to which tract of land the woodland is supportive and subordinate.
For the purposes of section 7 of P.L.2009, c.213 and P.L.1964, c.48 (C.54:4-23.1 et seq.):
(1) agricultural use shall also include biomass, solar, or wind energy generation, provided that the biomass, solar, or wind energy generation is consistent with the provisions of P.L.2009, c.213 (C.4:1C-32.4 et al.), as applicable, and the rules and regulations adopted therefor; and
(2) "biomass" means an agricultural crop, crop residue, or agricultural byproduct that is cultivated, harvested, or produced on the farm, or directly obtained from a farm where it was cultivated, harvested, or produced, and which can be used to generate energy in a sustainable manner, except with respect to preserved farmland, "biomass" means the same as that term is defined in section 1 of P.L.2009, c.213 (C.4:1C-32.4).
d. For the purposes of this section, "preserved farmland" means land on which a development easement was conveyed to, or retained by, the State Agriculture Development Committee, a county agricultural development board or other county or municipal entity, or a qualifying tax exempt nonprofit organization pursuant to the provisions of section 24 of P.L.1983, c.32 (C.4:1C-31), section 5 of P.L.1988, c.4 (C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38), section 1 of P.L.1999, c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999, c.152 (C.13:8C-37 through C.13:8C-40), or any other State law enacted for farmland preservation purposes.
(cf: P.L.2009, c.256, s.13)
2. Section 5 of P.L.1964, c.48 (C.54:4-23.5) is amended to read as follows:
5. a. Except as otherwise provided in subsection d. of this section, land, five acres in area, shall be deemed to be actively devoted to agricultural or horticultural use when the amount of the gross sales of agricultural or horticultural products produced thereon, any payments received under a soil conservation program, fees received for breeding, raising or grazing any livestock, income imputed to cropland pastured and permanent pasture land used for grazing in the amount determined by the State Farmland Evaluation Committee created pursuant to section 20 of P.L.1964, c.48 (C.54:4-23.20), and fees received for boarding, rehabilitating or training any livestock where the land under the boarding, rehabilitating or training facilities is contiguous to land which otherwise qualifies for valuation, assessment and taxation under P.L.1964, c.48, have averaged at least $1,000 per year during the two-year period immediately preceding the tax year in issue, or there is clear evidence of anticipated yearly gross sales, payments, fees, and imputed income amounting to at least $1,000 within a reasonable period of time, or such amount as may be established by the State Farmland Evaluation Committee pursuant to this section. In the case of woodland subject to a woodland management plan pursuant to section 3 of P.L.1964, c.48 (C.54:4-23.3), the amount shall be at least $500, or such amount as may be established by the State Farmland Evaluation Committee pursuant to this section. Every three years, or sooner at the call of the Secretary of Agriculture or the Director of the Division of Taxation, the State Farmland Evaluation Committee shall review the minimum gross sales, payments, fees, and imputed income requirements, and anticipated yearly gross sales, payments, fees, and imputed income requirements, established in this section for the first five acres, and may, by rule or regulation adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), raise the amounts of those minimums to such levels as the committee determines appropriate. Any increase made to the minimum gross sales, payments, fees, and imputed income requirements, and anticipated yearly gross sales, payments, fees and imputed income requirements, for the first five acres as authorized pursuant to this section shall not be enforced until the third tax year following adoption of the increase.
In addition, where the land is
more than five acres in area, it shall be deemed to be actively devoted to
agricultural or horticultural use when the amount of the gross sales of
agricultural or horticultural products produced on the area above five acres, any
payments received under a soil conservation program, fees received for
breeding, raising or grazing any livestock, income imputed to cropland pastured
and permanent pasture land used for grazing in the amount determined by the
State Farmland Evaluation
Committee created pursuant to section 20 of P.L.1964, c.48 (C.54:4-23.20), and
fees received for boarding, rehabilitating or training any livestock where the
land under the boarding, rehabilitating or training facilities is contiguous to
land which otherwise qualifies for valuation, assessment and taxation under
P.L.1964, c.48, have averaged at least [$5.00] $5
per acre per year during the two-year period immediately preceding the tax year
in issue, or there is clear evidence of anticipated yearly gross sales,
payments, fees, and imputed income amounting to an average of at least [$5.00] $5 per
year within a reasonable period of time; except in the case of woodland and
wetland, where the minimum requirement shall be an average of $0.50 per acre on
the area above five acres.
In addition, in order for land to be deemed to be actively devoted to agricultural or horticultural use, the activity and use must be consistent with the guidelines describing generally accepted agricultural and horticultural practices developed and adopted pursuant to subsection a. of section 1 of P.L.2013, c.43 (C.54:4-23.3d).
[As used in this section, "livestock" shall not include dogs.
For the purposes of this section, the presence of an intervening public thoroughfare shall not preclude a finding of contiguity] The provisions of this subsection shall not apply to preserved farmland.
b. (1) Land previously qualified as actively devoted to agricultural or horticultural use under P.L.1964, c.48, but failing to meet the additional requirement on acreage above five acres, shall not be subject to the roll-back tax because of such disqualification, but shall be treated as land for which an annual application has not been submitted, provided that the land remains in agricultural or horticultural use.
(2) Land previously qualified as actively devoted to agricultural or horticultural use under P.L.1964, c.48, but failing to meet any increase in the minimum amount of gross sales, payments and fees received, and imputed income requirements, and anticipated yearly gross sales, payments, fees, and imputed income requirements, established pursuant to subsection a. of this section, shall not be subject to the roll-back tax because of such disqualification, but shall be treated as land for which an annual application has not been submitted, provided that the land remains in agricultural or horticultural use.
(3) Land qualified as actively devoted to agricultural or horticultural use as of the day before the date of enactment of P.L.2013, c.43 (C.54:4-23.3d et al.) due to the use of payments or other compensation received under a soil conservation program agreement with any agency of the federal government, but which payments or other compensation do not meet the minimum amounts required pursuant to subsection a. of this section as amended by P.L.2013, c.43 (C.54:4-23.3d et al.), shall continue to be deemed to be actively devoted to agricultural or horticultural use for purposes of valuation, assessment and taxation under P.L.1964, c.48 until the end of the soil conservation program agreement period.
c. In determining the eligibility of land for valuation, assessment and taxation pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.), the assessor of the taxing district in which the land is located shall, upon request by the owner of the land, exempt the owner from the income requirements of this section if the owner demonstrates to the satisfaction of the assessor that the failure to meet the income requirements was due to an injury, illness or death of the person responsible for performing the activities which produce the income necessary to meet the income eligibility requirement of this section. The request of the owner shall be accompanied by a certificate of a physician stating that the person was physically incapacitated or by a certified copy of the death certificate, as the case may be. The assessor may only grant an exemption once for a particular illness, injury or death.
d. The gross sales, payments, fees, and imputed income received pursuant to the requirements of this section shall not apply to land that (1) is the subject of a forest stewardship plan approved by the Department of Environmental Protection pursuant to section 3 of P.L.2009, c.256 (C.13:1L-31) which is fully implemented, and (2) otherwise qualifies under the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.), for valuation, assessment and taxation as land in agricultural or horticultural use pursuant to section 3 of P.L.1964, c.48 (C.54:4-23.3).
e. Any land that is preserved farmland shall be deemed to be actively devoted to agricultural or horticultural use.
Each municipality shall establish procedures and recordkeeping standards with the municipal tax assessor for the registration of permanently preserved farmland for the purposes of this subsection, including, but not necessarily limited to, compliance with any requirements of the Director of the Division of Taxation in the Department of the Treasury and the automatic application of farmland assessment to the preserved farmland after its initial registration. Upon receipt of documentation of the permanent preservation of land as preserved farmland, the owner of the land shall register the land with the municipal tax assessor pursuant to the procedures established pursuant to this subsection, and the land shall be valued, assessed and taxed in accordance with P.L.1964, c.48 (C.54:4-23.1 et seq.) annually thereafter, without need for further registration or application as long as the land remains preserved farmland.
f. For the purposes of this section:
(1) "Livestock" shall not include dogs;
(2) The presence of an intervening public thoroughfare shall not preclude a finding of contiguity; and
(3) "Preserved farmland"
means land on which a development
easement was conveyed to, or retained by, the State Agriculture Development
Committee, a county agricultural development board or other county or municipal
entity, or a qualifying tax exempt nonprofit organization pursuant to the
provisions of section 24 of P.L.1983, c.32 (C.4:1C-31), section 5 of P.L.1988,
c.4 (C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38), section 1 of
P.L.1999, c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999, c.152
(C.13:8C-37 through C.13:8C-40), or any other State law enacted for farmland
preservation purposes.
(cf: P.L.2013, c.43, 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; 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, except as otherwise provided by subsection e. of section 5 of P.L.1964, c.48 (C.54:4-23.5), 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] section, "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. Section 7 of P.L.1964, c.48 (C.54:4-23.7) is amended to read as follows:
7. The assessor in valuing land which qualifies as land actively devoted to agricultural or horticultural use under the tests prescribed by P.L.1964, c.48 and the guidelines describing generally accepted agricultural and horticultural practices developed and adopted pursuant to subsection a. of section 1 of P.L.2013, c.43 (C.54:4-23.3d), and as to which the owner thereof has made timely application, or is registered as provided pursuant to subsection e. of section 5 of P.L.1964, c.48 (C.54:4-23.5), for valuation, assessment and taxation hereunder for the tax year in issue, shall consider only those indicia of value which such land has for agricultural or horticultural use. In addition to use of personal knowledge, judgment and experience as to the value of land in agricultural or horticultural use, the assessor shall, in arriving at the value of such land, consider available evidence of agricultural and horticultural capability derived from the soil survey data at Rutgers, The State University, the National Co-operative Soil Survey, the recommendations of value of such land as made by any county or Statewide committee which may be established to assist the assessor, and the guidelines describing generally accepted agricultural and horticultural practices developed and adopted pursuant to subsection a. of section 1 of P.L.2013, c.43 (C.54:4-23.3d).
(cf: P.L.2013, c.43, s.3)
5. Section 13 of P.L.1964, c.48 (C.54:4-23.13) is amended to read as follows:
13. Eligibility of land for valuation, assessment and taxation under this act shall be determined for each tax year separately , except as otherwise provided by subsection e. of section 5 of P.L.1964, c.48 (C.54:4-23.5) . [Application] Except as otherwise provided by that subsection, application shall be submitted by the owner to the assessor of the taxing district in which such land is situated on or before August 1 or September 1, if an extension of time has been granted by the assessor under 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. If the application is filed by delivery through the mails or a commercial courier or messenger service, compliance with the time limit for filing shall be established if there is satisfactory evidence that it was committed for delivery to the United States Postal Service or the courier or messenger service within the time allowed for filing. In the case of a courier or messenger service, the application shall be received by the tax assessor of the taxing district within three days after the statutory filing date. An application once filed with the assessor for the ensuing tax year may not be withdrawn by the applicant after August 1 or after September 1, in cases where an extension of time for filing the application has been granted by the assessor, of the pretax year.
If a change in use of the land occurs between August 1 and December 31 of the pretax year, either the assessor or the county board of taxation shall deny or nullify such application and, after examination and inquiry, shall determine the full and fair value of said land under the valuation standard applicable to other land in the taxing district and shall assess the same, according to such value. If, notwithstanding such change of use, the land is valued, assessed and taxed under the provisions of this act in the ensuing year, the assessor shall enter an assessment, as an added assessment against such land, in the "Added Assessment List" for the particular year involved in the manner prescribed in P.L.1941, c.397 (C.54:4-63.1 et seq.). The amount of the added assessment shall be in an amount equal to the difference, if any, between the assessment imposed under this act and the assessment which would have been imposed had the land been valued and assessed as other land in the taxing district. The enforcement and collection of additional taxes resulting from any additional assessments so imposed shall be as provided by said chapter. The additional assessment imposed under this section shall not affect the roll-back taxes, if any, under section 8 of [this act] P.L.1964, c.48 (C.54:4-23.8).
The application review shall include an on-site inspection of the land at least once every three years. The municipality may impose a fee for an on-site inspection of not more than $25, except that contiguous and non-contiguous parcels of land owned by the same owner would be subject to a single fee.
(cf: P.L.1995, c.276, s.5)
6. Section 1 of P.L.1971, c.400 (C.54:4-23.15a) is amended to read as follows:
1. [On] a. Except for preserved farmland valued, assessed and taxed pursuant to subsection e. of section 5 of P.L.1964, c.48 (C.54:4-23.5), on or before July 1 the assessor shall mail to each taxpayer whose land has been valued, assessed, and taxed for the then current tax year pursuant to the "Farmland Assessment Act of 1964" a copy of the form prescribed to claim a continuance of valuation, assessment and taxation under such act for the succeeding tax year together with a notice that the completed form is required to be filed with the assessor on or before August 1.
The failure of any taxpayer to receive a form for claiming continuance of a farmland assessment shall not relieve him of the requirement to claim and establish his right thereto as required by law.
b. For the purposes of
this section, "preserved farmland" means land on which a development easement
was conveyed to, or retained by, the State Agriculture Development Committee, a
county agricultural development board or other county or municipal entity, or a
qualifying tax exempt nonprofit organization pursuant to the provisions of
section 24 of P.L.1983, c.32 (C.4:1C-31), section
5 of P.L.1988, c.4 (C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38),
section 1 of P.L.1999, c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999,
c.152 (C.13:8C-37 through C.13:8C-40), or any other State law enacted for
farmland preservation purposes.
(cf: P.L.1971, c.400, s.1)
7. This act shall take effect immediately, except that it shall be applicable to tax years commencing with the tax year immediately following the date of enactment.
STATEMENT
This bill provides that permanently preserved farmland would be considered land actively devoted to agricultural or horticultural use by virtue of its preservation status, and exempts preserved farmland from the income requirements for valuation, assessment and taxation as farmland under the "Farmland Assessment Act of 1964." The bill further directs each municipality to establish procedures and recordkeeping standards with the municipal tax assessors for the registration of permanently preserved farmland so that the preserved farmland would automatically receive farmland assessment each year without application, after the initial registration of the land as preserved farmland.
The bill defines preserved farmland as land on which a development easement was conveyed to, or retained by, the State Agriculture Development Committee, a county agricultural development board or other county or municipal entity, or a qualifying tax exempt nonprofit organization pursuant to any of the various listed farmland preservation laws.
