A 4378

ASSEMBLY, No. 4378
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 19, 2026
Sponsored by:
SAssemblyman� ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
���� Establishes farmland assessment certification for tax
assessors, online portal system for farmland assessment applications, and
hotline for reporting farmland assessment fraud; increases on-site inspections
for farmland under 10 acres in area and rollback tax.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act concerning farmland assessment, supplementing P.L.1999,
c.278 (C.54:1-35.25b et al.), amending P.L.1986, c.201, and amending and
supplementing P.L.1964, c.48.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
���� 1. (New section) a.� Within
six months of the effective date of P.L.��� , c.���� (C.������� ) (pending
before the Legislature as this bill), the Department of Community Affairs shall
develop and offer certification courses to tax assessors and other interested
individuals on the valuation, assessment, and taxation for farmland assessment
pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.).
���� b.� Completion of a
certification course offered pursuant to this section by individuals subject to
the provisions of section 1 of P.L.1999, c.278 (C.54:1-35.25b), shall not be
construed as fulfilling the certification, continuing education, and training requirements
of that section.
���� c.� The Department of
Community Affairs shall issue a certificate of completion to a tax assessor who
completes a certification course offered pursuant to this section.
���� 2. (New section) a.� Within 12
months of the effective date of P.L.��� , c.���� (C.������� ) (pending before
the Legislature as this bill), the Division of Taxation in the Department of
the Treasury shall design and implement an Internet-based application portal
through which taxpayers may apply for valuation, assessment, and taxation under
P.L.1964, c.48 (C.54:4-23.1 et seq.).� The Division of Taxation shall make the
Internet-based application available to each municipality upon implementation. �The
Internet-based application portal designed and implemented pursuant to this
section shall conform to the requirements set forth in section 14 of P.L.1964,
c.48 and allow applicants to:
���� (1) identify:
���� (a) the parcels of land for
which valuation, assessment, and taxation under P.L.1964, c.48 (C.54:4-23.1 et
seq.) are sought;
���� (b) the owners of such
parcels;
���� (c) the operator of a farm
situated on the parcels, if different from the owner;
���� (d) whether the parcels are
subject to a woodland management plan, pursuant to section 3 of P.L.1964, c.48
(C.54:4-23.3), or forest stewardship plan approved by the Department of
Environmental Protection pursuant to section 3 of P.L.2009, c.256 (C.13:1L-31);
and
���� (e) the agricultural or
horticultural products being produced on the parcels;
���� (2) certify the gross sales
derived from each agricultural or horticultural product being produced on the
parcels;
���� (3) certify compliance with a
woodland management plan or forest stewardship plan, if applicable;
���� (4) attach supporting
documentation in an electronic format, required for the proper execution of the
State�s farmland assessment laws, rules, regulations, protocols, standards, or
procedures;
���� (5) certify the accuracy of
the information submitted through the Internet-based application portal; and
���� (6) permit the tax assessor
and, where applicable, the Department of Agriculture and Department of
Environmental Protection, to review the submissions for compliance with
P.L.1964, c.48 (C.54:4-23.1 et seq.) and other applicable laws and regulations.
���� b.� Notwithstanding the
provisions of section 14 of P.L.1964, c.48 (C.54:4-23.14) or any law or regulation
to the contrary, once an Internet-based application portal is made available
pursuant to this section, applicants may utilize the Internet-based application
portal to determine the eligibility of land for valuation, assessment, and
taxation under P.L.1964, c.48 (C.54:4-23.1 et seq.) and to apply for valuation,
assessment, and taxation under P.L.1964, c.48 (C.54:4-23.1 et seq.).� Beginning
August 1 of the second year following implementation of the Internet-based
application portal, the Division of Taxation may require that all applications
for valuation, assessment, and taxation under P.L.1964, c.48 (C.54:4-23.1 et
seq.) be submitted through the Internet-based application portal.
���� 3.��� Section 2 of P.L.1986,
c.201 (C.54:4-23.3a) is amended to read as follows:
���� 2.��� a.� Upon receipt of a
copy of an application and accompanying information pursuant to section 3 of
P.L.1964, c.48 (C.54:4-23.3), the Commissioner of the Department of
Environmental Protection shall acknowledge receipt of such to both the
applicant and the assessor of the taxing district in which the land is
situated.
���� b.� The commissioner shall
provide for a review of the application for compliance with subsection a. of
section 3 of P.L.1964, c.48 (C.54:4-23.3). The application review shall include
an on-site inspection of the property during one of the first three years in
which applications are received [,] for land
that is 10 acres or greater in area and not less frequently than once every
three years following the first inspection, and once every two years in
which applications are received for land that is less than 10 acres in area.
���� c.� The commissioner shall
notify the assessor of the taxing district, in writing, of his findings of
compliance or noncompliance of each applicant with subsection a. of section 3
of P.L.1964, c.48 (C.54:4-23.3).� If the commissioner indicates to the assessor
a finding of compliance, the assessor may, upon his own determination that the
property is otherwise qualified for valuation, assessment and taxation, as
provided in P.L.1964, c.48 (C.54:4-23.1 et seq.), approve or disapprove the
application.� If the commissioner indicates to the assessor that the applicant
is not in compliance, the assessor shall disapprove the application.� The
assessor's approval or disapproval shall be transmitted to the applicant as in
the case of other applications for valuation, assessment and taxation, as
provided in P.L.1964, c.48 (C. 54:4-23.1 et seq.).
���� �d.�� In the event that the
commissioner does not give timely notice to the assessor of his findings after
review of the application, as timely notice is prescribed by rules and
regulations adopted by the Director of the Division of Taxation, pursuant to
section 3 of this amendatory and supplementary act, the assessor may approve or
disapprove the application as in the case of other applications not subject to
provisions of this amendatory and supplementary act.
���� e.� As used in this
section, �on-site inspection� means an inspection consisting of the superficial
observation by the assessor of the land identified in the owner�s application
for assessment pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.), including, but
not limited to, a physical survey of the land or visual examination of the land
via drone footage.
(cf: P.L.1986, c.201, s.2)
���� 4.��� Section 8 of P.L.1964,
c.48 (C.54:4-23.8) is amended to read as follows:
���� 8.��� 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 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 of the [two] three
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 land shall be subject to
roll-back taxes for such of the [two] three
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 which is valued, assessed
and taxed under the provisions of P.L.1964, c.48 (C.54:4-23.1 et seq.) and 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.
(cf: P.L.2001, c.312, s.2)
���� 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. 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.
���� The application review shall
include an on-site inspection of the land at least once every three years for
land that is 10 acres or greater in area and once every two years for land that
is less than 10 acres in area.� 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.
���� As used in this section,
�on-site inspection� means an inspection consisting of the superficial
observation by the assessor of the land identified in the owner�s application
for assessment pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.), including, but
not limited, to a physical survey of the land or visual examination of the land
via drone footage.
(cf: P.L.1995, c.276, s.5)
���� 6.��� Section 14 of P.L.1964,
c.48 (C.54:4-23.14) is amended to read as follows:
���� 14. a. Application for
valuation, assessment and taxation of land in agricultural or horticultural use
under P.L.1964, c.48 shall be on a form prescribed by the Director of the
Division of Taxation in the Department of the Treasury, in consultation with the
State Board of Agriculture, and provided for the use of claimants by the
governing bodies of the respective taxing districts.� The form of application
shall provide for the reporting of information pertinent to the provisions of
Article VIII, Section 1, paragraph 1(b) of the Constitution, as amended, and
P.L.1964, c.48.� The form shall include a plain language recitation and
explanation of 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) that may be used by municipal tax
assessors, county assessors, county tax administrators, and other appropriate
local government officials to assist them in determining whether land may be
deemed to be in agricultural use, horticultural use, or actively devoted to
agricultural or horticultural use pursuant to the "Farmland Assessment Act
of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).� The applicant shall
include with the form of application, in a manner prescribed by the director,
proofs of sales of agricultural or horticultural products, and of any other
payments, fees, or imputed income received from the agricultural or
horticultural use of the land, in the prior year, or clear evidence of anticipated
yearly gross sales, payments, fees, or imputed income, amounting to at least
$1,000 for the first five acres, or 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)
amounting to at least $500 for the first five acres, or in either case
amounting to such sums as may be established by the State Farmland Evaluation
Committee pursuant to subsection a. of section 5 of P.L.1964, c.48
(C.54:4-23.5).
���� In the case of land that 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 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), no proofs required
pursuant to this subsection of gross sales, payments, fees, or imputed income,
or of clear evidence of anticipated yearly gross sales, payments, fees, or
imputed income, need be included with the form or otherwise submitted.�
However, the applicant shall include documentation demonstrating implementation
of the forest stewardship plan, including documentation of scheduled
activities, a forest inventory and yield parameters to document forest
productivity, and inspections performed, in accordance with rules and
regulations adopted for the forest stewardship program by the Department of
Environmental Protection.
���� b.��� A certification by the
landowner that the facts set forth in the application are true may be
prescribed by the director to be in lieu of a sworn statement to that effect.�
Statements so certified shall be considered as if made under oath and subject
to the same penalties as provided by law for perjury.
���� In addition, for a gross and
intentional misrepresentation on the application, the landowner shall be
subject to a civil penalty of up to $5,000.� Any such civil penalty may be
imposed and collected by the municipality, the county, or the State, with costs,
in a summary proceeding pursuant to the "Penalty Enforcement Law of
1999," P.L.1999, c.274 (C.2A:58-10 et seq.).� The Superior Court and the
municipal court shall have jurisdiction to enforce the provisions of the
"Penalty Enforcement Law of 1999" in connection with this
subsection.� One-half of any civil penalties so collected by a municipality or
county shall be dedicated and used by the municipality or county in
administering and enforcing the provisions of the "Farmland Assessment Act
of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.) in the municipality or
county.� The remaining one-half of any civil penalties so collected by a
municipality or county shall be paid by the municipality or county to the
State, and together with any civil penalties so collected directly by the
State, shall be dedicated and used by the Department of Agriculture and the
Division of Taxation in administering and enforcing the provisions of P.L.1964,
c.48.
���� c.���� Any landowner, except
those who have submitted a woodland management plan or a forest stewardship
plan pursuant to section 3 of P.L.1964, c.48 (C.54:4-23.3), who is an applicant
for valuation, assessment and taxation pursuant to P.L.1964, c.48 (C.54:4-23.1
et seq.) for lands not previously qualified under P.L.1964, c.48 shall submit
with the application a map of land use classes and soil groups that conforms
with standards established by the Division of Taxation in consultation with the
State Board of Agriculture.
���� d.��� For any landowner whose
farm management unit is less than seven acres in size, the landowner shall
submit with the application form a narrative describing the agricultural or
horticultural uses on the farm management unit, the number of acres that will be
actively devoted to those uses, and a sketch of the location on the farm
management unit of those uses.� For the purposes of this subsection, "farm
management unit" means a parcel or parcels of land, whether contiguous or
noncontiguous, together with agricultural or horticultural buildings,
structures and facilities, producing agricultural or horticultural products,
and operated as a single enterprise.
���� e.���� The director, after
consultation with the State Board of Agriculture, shall include with each
application a letter or other document explaining any changes to the law,
rules, regulations, and guidelines on the valuation, assessment and taxation of
land pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.) that have occurred in the
prior tax year and which shall be newly in effect in the tax year for which the
application is being submitted.
���� f.���� The director shall
devise a form for the extension of filing time for the valuation application,
which form shall include the name and address of the applicant, the reason for
the extension, and a space for the approval or rejection of the assessor.
���� g.��� Within six months of
the effective date of P.L.��� , c.���� (C.�� ) (pending before the Legislature
as this bill), the director shall establish and maintain a toll-free telephone
hotline, that shall be available, at a minimum, on weekdays between 9:00 a.m.
and 5:00 p.m., through which individuals may report suspected violations of
this section.� The director shall review the reports received and shall
investigate each report and take action as necessary to enforce the
requirements established pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.).� The
director shall take appropriate steps to publicize the hotline.
(cf: P.L.2013, c.43, s.4)
���� 7. This act shall take effect
immediately.
STATEMENT
���� This bill requires the
Department of Community Affairs, within six months of the bill�s effective
date, to develop and offer certification courses for tax assessors on the
valuation, assessment, and taxation for farmland assessment pursuant to the
�Farmland Assessment Act of 1964� P.L.1964, c.48 (C.54:4-23.1 et seq.).� The
bill also requires the Division of Taxation (division), within 12 months of the
bill�s effective date, to create an online application portal for landowners
whose property is assessed, valued, and taxed under the �Farmland Assessment
Act of 1964� and prescribes certain information farmland assessment applicants
are to provide.
���� Under the bill, the on-site
inspection requirement for farmland assessment applicants would be modified
from once every three years to every other year for land under 10 acres in
area.� Additionally, the bill would increase the roll-back taxes to include taxes
that would have been paid or would have been payable had the land been valued,
assessed, and taxed as other land in the taxing district to three tax years
immediately preceding the current tax assessment.� Finally, the bill requires
the division, within six months of the bill�s effective date, to establish and
maintain a hotline for individuals to report suspected intentional application
misrepresentations by landowners who receive farmland assessment.
���� In 1964, the New Jersey Senate
held a public hearing on the proposed constitutional amendment to allow for
farmland assessment.� One of the major concerns raised at the time was the
possibility of abuse by certain landowners.� However, after over 60 years since
the farmland assessment program was instituted in the State, this still remains
a concern.� While the farmland assessment program has been a success in saving
thousands of acres from development and providing locally grown food and
commodities to our residents, it is worth increasing oversight to ensure that
the taxpayer is not taken advantage of.