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A1506 FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 1506
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 8, 2026
SUMMARY
Synopsis:
Exempts from the realty transfer fee the recording of a
deed conveying preserved farmland to a qualified beginning farmer.
Type of Impact:
Annual State revenue net loss.
Agencies Affected:
Department of the Treasury and Department of Agriculture.
Office of
Legislative Services Estimate
Annual Fiscal Impact
State Revenue Net Loss
Indeterminate
�
The Office of Legislative Services (OLS) finds that the bill
would result in an indeterminate annual State revenue net loss due to the
exemption of certain preserved farmland transfers from the realty transfer fee.
�
The amount of revenue loss would depend on the number of
preserved farmland transactions involving qualified beginning farmers and the
sale price of those properties, as the fee is based on the amount of
consideration paid for the transferred property.
�
The bill may also result in a minimal annual revenue gain because
the Department of Agriculture is authorized to charge applicants a
certification fee of up to $100 to qualify as a beginning farmer.
BILL DESCRIPTION
����� This bill exempts preserved farmland transfers to
qualified beginning farmers from the realty transfer fee. �Under the bill, the
State would not collect the fee when preserved farmland is sold to a person who
possesses written certification from the Department of Agriculture
demonstrating that they qualify as a beginning farmer. �The Department of
Agriculture is directed to establish a certification process, including
eligibility criteria and application procedures, and may charge up to a $100
fee for certification. �The exemption applies only to a limited category of
property transfers and to purchasers who meet the beginning farmer requirements.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS concludes that the bill would result in an
indeterminate annual decrease in State revenues due to the exemption of certain
preserved farmland transfers from the realty transfer fee. �The State would
lose revenue otherwise collected upon the recording of deeds conveying
preserved farmland to certified beginning farmers. �The amount of revenue loss
would depend on the number of preserved farmland transactions involving
qualified beginning farmers and the amount of consideration paid for those
properties, as the realty transfer fee is calculated based upon the sale price
of the transferred property.
����� According to publicly available State farmland
preservation information, New Jersey has preserved approximately 250,000 acres
of farmland comprising roughly 2,800 farms. �However, the OLS notes that the
fiscal impact of the bill would depend not on the total number of preserved
farms, but rather on the number of preserved farmland transactions occurring
annually that involve purchasers qualifying as beginning farmers under the
bill. �Because the bill applies only to a limited category of property
transfers and a limited class of purchasers, the OLS expects the overall State
revenue loss to be minimal, though indeterminate.
����� The bill may also result in a minimal annual revenue
gain because the Department of Agriculture is authorized to charge applicants a
certification fee of up to $100 to qualify as a beginning farmer. �To the
extent certified beginning farmers pay the authorized fee, the State may
realize a small revenue gain; however, the amount of such revenue cannot be
determined absent information regarding the number of anticipated certification
applicants annually.
Section:
Revenue, Finance, and Appropriations
Analyst:
Patrick Walsh
Associate Fiscal Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).