Authorizes farmland assessment for forested lands and woodlands devoted to the production of USDA designated specialty crops; exempts such lands from woodland management plan requirement.

A1238

ASSEMBLY, No. 1238

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman MICHAEL INGANAMORT

District 24 (Morris, Sussex and Warren)

Assemblywoman DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Authorizes farmland assessment for forested lands and
woodlands devoted to the production of USDA designated specialty crops; exempts
such lands from woodland management plan requirement.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning farmland assessment for lands devoted to the
production of specialty crops and amending P.L.1964, c.48.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� Section 3 of P.L.1964,
c.48 (54:4-23.3) is amended to read as follows:

���� 3.��� Land shall be deemed to
be in agricultural use when devoted to the production for sale of plants and
animals useful to man, including but not limited to:� forages and sod crops;
grains and feed crops; dairy animals and dairy products; poultry and poultry
products; livestock, including beef cattle, sheep, swine, horses, ponies, mules
or goats, including the breeding, boarding, raising, rehabilitating, training
or grazing of any or all of such animals, except that "livestock"
shall not include dogs; bees and apiary products; fur animals; trees and forest
products; or when devoted to and meeting the requirements and qualifications
for payments or other compensation pursuant to a soil conservation program
under an agreement with an agency of the federal government, except that land
which is devoted exclusively to the production for sale of tree and forest
products, other than Christmas trees, or devoted as sustainable forestland, and
is not appurtenant woodland, shall not be deemed to be in agricultural use
unless the landowner fulfills the following additional conditions:

���� a.���� The landowner
establishes and complies with the provisions of a forest stewardship plan for
this land, approved by the Department of Environmental Protection pursuant to
section 3 of P.L.2009, c.256 (C.13:1L-31), or a woodland management plan for
this land, prepared in accordance with policies, guidelines and practices
approved by the Division of Parks and Forestry in the Department of
Environmental Protection, in consultation with the Department of Agriculture
and the Dean of Cook College at Rutgers, The State University, which policies,
guidelines and practices are designed to eliminate excessive and unnecessary
cutting;

���� b.��� The landowner, and a
forester from a list of foresters approved by the Department of Environmental
Protection or other professional from a list of other professionals authorized
by the department in consultation with the forest stewardship advisory committee
established pursuant to section 8 of P.L.2009, c.256 (C.13:1L-36), annually
attest to compliance with subsection a. of this section; and

���� c.���� The landowner annually
submits an application, as prescribed in section 13 of P.L.1964, c.48
(C.54:4-23.13), to the assessor, accompanied by a copy of the plan established
pursuant to subsection a. of this section; written documentation of compliance
with subsection b. of this section; a supplementary woodland data form setting
forth woodland management actions taken in the pre-tax year, the type and
quantity of tree and forest products sold, and the amount of income received or
anticipated for same; a map of the land showing the location of the activity
and the soil group classes of the land; and other pertinent information
required by the Director of the Division of Taxation as part of the application
for valuation, assessment and taxation, as provided in P.L.1964, c.48
(C.54:4-23.1 et seq.).� The landowner shall, at the same time, submit to the
Commissioner of the Department of Environmental Protection an exact copy of the
application and accompanying information submitted to the assessor pursuant to this
subsection.�

����
The requirements of
subsections a. through c. of this section shall not apply to the production of
a crop designated as a specialty crop by the United States Department of
Agriculture.� Forested land or woodlands shall be deemed to be in agricultural
use when devoted to the production for sale of a specialty crop, including, but
not limited to, the production of maple syrup from sap collected from trees
grown and maintained on the forested lands or woodlands.� The landowner
producing a specialty crop on forested land or woodlands shall not be required
to submit a woodland management plan for the forested lands or woodlands as
part of the application for farmland assessment.� The landowner shall annually
submit an application, as prescribed in section 13 of P.L.1964, c.48
(C.54:4-23.13), to the assessor, accompanied with written documentation of the
production of a specialty crop on the lands, the designation of the specialty
crop as such by the United States Department of Agriculture, the type and
quantity of the specialty crop produced and sold, and the amount of income
received or anticipated for the same.

���� For the purposes of this
amendatory and supplementary act, "appurtenant woodland" means a
wooded piece of property which is contiguous to, part of, or beneficial to a
tract of land, which tract of land has a minimum area of at least five acres devoted
to agricultural or horticultural uses other than the production for sale of
trees and forest products, exclusive of Christmas trees, to which tract of land
the woodland is supportive and subordinate.

���� For the purposes of section 7
of P.L.2009, c.213 and P.L.1964, c.48 (C.54:4-23.1 et seq.):

���� (1)�� agricultural use shall
also include biomass, solar, or wind energy generation, provided that the
biomass, solar, or wind energy generation is consistent with the provisions of
P.L.2009, c.213 (C.4:1C-32.4 et al.), as applicable, and the rules and regulations
adopted therefor; and

���� (2)�� "biomass"
means an agricultural crop, crop residue, or agricultural byproduct that is
cultivated, harvested, or produced on the farm, or directly obtained from a
farm where it was cultivated, harvested, or produced, and which can be used to
generate energy in a sustainable manner, except with respect to preserved
farmland, "biomass" means the same as that term is defined in section
1 of P.L.2009, c.213 (C.4:1C-32.4).

(cf:� P.L.2009, c.256, s.13)

���� 2.� Section 5 of P.L.1964,
c.48 (C.54:4-23.5) is amended to read as follows:

���� 5.� a.� Except as otherwise
provided in subsection d. of this section, land, five acres in area, shall be
deemed to be actively devoted to agricultural or horticultural use when the
amount of the gross sales of agricultural or horticultural products produced
thereon,
including a crop designated as a specialty crop by the United
States Department of Agriculture,
any payments received under a soil
conservation program, fees received for breeding, raising or grazing any
livestock, income imputed to cropland pastured and permanent pasture land used
for grazing in the amount determined by the State Farmland Evaluation Committee
created pursuant to section 20 of P.L.1964, c.48 (C.54:4-23.20), and fees
received for boarding, rehabilitating or training any livestock where the land
under the boarding, rehabilitating or training facilities is contiguous to land
which otherwise qualifies for valuation, assessment and taxation under
P.L.1964, c.48, have averaged at least $1,000 per year during the two-year
period immediately preceding the tax year in issue, or there is clear evidence
of anticipated yearly gross sales, payments, fees, and imputed income amounting
to at least $1,000 within a reasonable period of time, or such amount as may be
established by the State Farmland Evaluation Committee pursuant to this
section.� 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), the amount shall be at
least $500, or such amount as may be established by the State Farmland Evaluation
Committee pursuant to this section.� Every three years, or sooner at the call
of the Secretary of Agriculture or the Director of the Division of Taxation,
the State Farmland Evaluation Committee shall review the minimum gross sales,
payments, fees, and imputed income requirements, and anticipated yearly gross
sales, payments, fees, and imputed income requirements, established in this
section for the first five acres, and may, by rule or regulation adopted
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), raise the amounts of those minimums to such levels as the
committee determines appropriate.� Any increase made to the minimum gross
sales, payments, fees, and imputed income requirements, and anticipated yearly
gross sales, payments, fees and imputed income requirements, for the first five
acres as authorized pursuant to this section shall not be enforced until the
third tax year following adoption of the increase.

���� In addition, where the land is
more than five acres in area, it shall be deemed to be actively devoted to
agricultural or horticultural use when the amount of the gross sales of
agricultural or horticultural products,
including a crop designated as a
specialty crop by the United States Department of Agriculture,
produced on
the area above five acres, any payments received under a soil conservation
program, fees received for breeding, raising or grazing any livestock, income
imputed to cropland pastured and permanent pasture land used for grazing in the
amount determined by the State Farmland Evaluation Committee created pursuant
to section 20 of P.L.1964, c.48 (C.54:4-23.20), and fees received for boarding,
rehabilitating or training any livestock where the land under the boarding,
rehabilitating or training facilities is contiguous to land which otherwise
qualifies for valuation, assessment and taxation under P.L.1964, c.48, have
averaged at least $5.00 per acre per year during the two-year period
immediately preceding the tax year in issue, or there is clear evidence of
anticipated yearly gross sales, payments, fees, and imputed income amounting to
an average of at least $5.00 per year within a reasonable period of time;
except in the case of woodland and wetland, where the minimum requirement shall
be an average of $0.50 per acre on the area above five acres.

���� In addition, in order for land
to be deemed to be actively devoted to agricultural or horticultural use, the
activity and use must be consistent with 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).

���� As used in this section,
"livestock" shall not include dogs.

���� For the purposes of this
section, the presence of an intervening public thoroughfare shall not preclude
a finding of contiguity.

���� b. (1) Land previously
qualified as actively devoted to agricultural or horticultural use under
P.L.1964, c.48, but failing to meet the additional requirement on acreage above
five acres, shall not be subject to the roll-back tax because of such disqualification,
but shall be treated as land for which an annual application has not been
submitted, provided that the land remains in agricultural or horticultural use.

���� (2)�� Land previously
qualified as actively devoted to agricultural or horticultural use under
P.L.1964, c.48, but failing to meet any increase in the minimum amount of gross
sales, payments and fees received, and imputed income requirements, and
anticipated yearly gross sales, payments, fees, and imputed income
requirements, established pursuant to subsection a. of this section, shall not
be subject to the roll-back tax because of such disqualification, but shall be
treated as land for which an annual application has not been submitted,
provided that the land remains in agricultural or horticultural use.

���� (3)�� Land qualified as
actively devoted to agricultural or horticultural use as of the day before the
date of enactment of P.L.2013, c.43 (C.54:4-23.3d et al.) due to the use of
payments or other compensation received under a soil conservation program
agreement with any agency of the federal government, but which payments or
other compensation do not meet the minimum amounts required pursuant to
subsection a. of this section as amended by P.L.2013, c.43 (C.54:4-23.3d et
al.), shall continue to be deemed to be actively devoted to agricultural or
horticultural use for purposes of valuation, assessment and taxation under
P.L.1964, c.48 until the end of the soil conservation program agreement period.

���� c.���� In determining the
eligibility of land for valuation, assessment and taxation pursuant to
P.L.1964, c.48 (C.54:4-23.1 et seq.), the assessor of the taxing district in
which the land is located shall, upon request by the owner of the land, exempt
the owner from the income requirements of this section if the owner
demonstrates to the satisfaction of the assessor that the failure to meet the
income requirements was due to an injury, illness or death of the person
responsible for performing the activities which produce the income necessary to
meet the income eligibility requirement of this section. The request of the
owner shall be accompanied by a certificate of a physician stating that the
person was physically incapacitated or by a certified copy of the death
certificate, as the case may be.� The assessor may only grant an exemption once
for a particular illness, injury or death.

���� d.��� The gross sales,
payments, fees, and imputed income received pursuant to the requirements of
this section shall not apply to land that (1) 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 (2) 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).

(cf:� P.L.2013, c.43, s.2)

���� 3.� This act shall take effect
immediately.

STATEMENT

���� This bill amends the �Farmland
Assessment Act of 1964,� to deem forested land or woodlands to be in
agricultural use when devoted to the production for sale of a crop designated
as a specialty crop by the United States Department of Agriculture, including,
but not limited to, the production of maple syrup from sap collected from trees
grown and maintained on the forested lands or woodlands.� The bill further
exempts the landowner of such lands from the woodland management plan
requirement to receive farmland assessment valuation for such lands.� The bill
does not change the other income and eligibility requirements for farmland
assessment under the current law.