New Jersey Senate Bill SCR16

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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.