New Jersey Assembly Bill ACR172

New Jersey 2024-2025 Regular Session

• Introduced: 7/24/25
• Refer: 7/24/25

Caption

Amends State Constitution to decrease acreage required for farmland assessment with certain requirements for valuing farmland under five acres in area.

Impact

If passed, ACR172 would enfranchise smaller landowners by enabling them to qualify for property tax assessments based on agricultural use, which are significantly lower than regular market valuations. Specifically, landowners with parcels between three and four acres could receive an assessment of 60% of the land's agricultural value, while those with parcels between four and five acres could receive an 80% assessment. This modification is intended to encourage agricultural activities on smaller plots of land and could lead to increased rural development and local agriculture.

Summary

Assembly Concurrent Resolution No. 172 (ACR172) proposes an amendment to the New Jersey Constitution that aims to reduce the minimum acreage required for farmland assessment. The current law stipulates that only properties of five acres or more qualify for such assessments. This amendment seeks to lower that threshold to three acres, thereby allowing more landowners to benefit from the farmland assessment which offers tax advantages based on agricultural or horticultural use.

Contention

The proposed amendment has potential points of contention, especially concerning its implications for local tax revenues. Critics may express concerns that lowering the qualifying acreage could reduce municipal revenues from property taxes since more parcels would be assessed at these lower rates. Additionally, there could be disagreements regarding whether special treatment for smaller landowners may lead to inequities within the agricultural community. Supporters, however, argue that the change is necessary to support small-scale farmers and promote sustainable agriculture in the state.