Bill > S3405

This bill modifies New Jersey's law regarding property tax assessment for farmland by introducing a new hardship exemption process for landowners whose agricultural or horticultural land is not actively in use. Currently, when farmland is converted to a non-agricultural use, it is subject to "roll-back taxes," which are additional taxes calculated as the difference between the reduced agricultural land tax rate and what would have been paid at the standard property tax rate for the current and two preceding tax years. The bill now allows landowners to petition their local tax assessor for a hardship exemption from these roll-back taxes, even if the land is not actively being used for agriculture. When considering such a petition, the assessor must evaluate multiple factors, including the nature of the hardship, the owner's intent to return the land to agricultural use, the duration of the hardship, relevant legal precedents, the actual use of the property, and the owner's recent agricultural-related actions. The bill clarifies that simply ceasing agricultural activity does not automatically trigger roll-back taxes, and it provides a formal process for landowners to seek relief from these taxes under certain circumstances. Landowners must submit their hardship petition by August 1 (or September 1 with an extension), and the assessor has discretion to grant, deny, or conditionally approve the exemption.

Budget and Finance, Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/S3405