Proposes constitutional amendment to increase additional taxes owed when farmland property is not used for agricultural or horticultural purposes.
Impact
If approved by voters, SCR16 would fundamentally change the taxation landscape for farmland in New Jersey. By extending the retrospective taxation period from two years to ten years, the amendment would impose greater financial burdens on property owners who transition their farmland to non-agricultural uses. This could deter landowners from ceasing agricultural activities, thereby potentially supporting the preservation of farmland but also risking the financial viability of owners who may wish to repurpose their land.
Summary
Senate Concurrent Resolution No. 16 (SCR16) proposes a constitutional amendment aimed at increasing the additional taxes owed on farmland that is no longer utilized for agricultural or horticultural purposes. Currently, New Jersey law allows for property tax reductions for active farmland. When farmland is no longer farmed, additional taxes are owed for the first year of inactivity and the prior two years. SCR16 seeks to extend this period considerably, applying the additional tax liabilities to the ten years preceding the cessation of agricultural use, thereby significantly altering the existing taxation framework for such properties.
Contention
The proposed amendment is likely to spark debate among stakeholders. Proponents argue that it is a necessary measure to maintain agricultural land in production and prevent speculative development that could erode farmland. However, opponents may view it as excessive government intervention that restricts landowners' rights and complicates the management of their properties. The extension of taxable years may particularly concern farmers who strive for business adaptability in a changing economy, while also raising questions about fairness in equity and taxation.
Carry Over
Proposes constitutional amendment to increase additional taxes owed when farmland property is not used for agricultural or horticultural purposes.
Prohibits condemnation of farmland actively supporting agricultural or horticultural production for purpose other than agricultural or horticultural production.
Changes certain allocations and amounts of constitutionally dedicated CBT revenues for Fiscal Year 2026 and thereafter; authorizes Garden State Preservation Trust and local governments to acquire lands in urban areas for agricultural or horticultural purposes.
Changes certain allocations and amounts of constitutionally dedicated CBT revenues for Fiscal Year 2026 and thereafter; authorizes Garden State Preservation Trust and local governments to acquire lands in urban areas for agricultural or horticultural purposes.
Establishes Farmland Assessment Review Commission to annually review and recommend changes to farmland assessment program, as necessary to ensure fair, equitable, and uniform Statewide application and enforcement of program requirements and allocation of program benefits.