New Jersey farmers
will have to show they have made at least $1,000 in income this year on
their first five acres, to qualify for a farmland assessment discount on
property taxes.
That’s up from $500 in the past, said Tom Beaver of the New Jersey Farm Bureau.
Farmland assessment reduces the
taxable value of farmland in some areas of New Jersey by as much as 90
percent compared to other kinds of commercial or residential property.
The exact discount is determined by factors such as whether the farm has
cropland or woodlands, and the quality of its soil.
“The real meaning for farmers is
the ability to remain viable and in business,” said Beaver. “If they
were paying the regular per- acre tax assessment it would be untenable.”
Until this year, tax assessors
had the option of requesting proof of sale of farm products, but now
every farmer is required to prove at least $1,000 in sales.
It’s the first time the farmland
assessment program has changed substantially in many years, and comes
out of legislation signed into law by Gov. Chris Christie in 2013. It
takes effect for the first time this year, Beaver said.
To help farmers understand their
new obligations, the Farm Bureau is holding an information session March
25 at the Mays Landing branch of the Atlantic County Library. Speakers
include Bob Bruch, a former New Jersey Department of Agriculture
farmland assessment specialist; and NJFB President Ryck Suydam and
staff-members.
“The acreage requirement will not
change, that’s in the state Constitution as a minimum of five acres,”
said Beaver. It would take a public vote in an election to change the
minimum acreage to qualify for farmland assessment.
He said farmers must apply every year by Aug. 1 for the farmland assessment for the following tax year.
The discounted rate applies only
to actively farmed land, not to the taxes they pay on their houses and
other improvements like swimming pools or driveways, Beaver said.
He said farmers with higher soil quality have higher tax assessments.
“It’s still significantly reduced but better quality soil is assumed to be a little more productive,” he said.
The farmland assessment program began in the mid 1960’s, Beaver said.
“The idea is to keep a viable
farming base, to give farmers some degree of (tax) relief,” he said.
“This is the first significant tweaking of the program in a while.”
IF YOU GO:
New Jersey Farm Bureau
informational seminar on new requirements for farmland assessment 6:30
p.m. February 25 at the Atlantic County Library Mays Landing branch on
Farragut Ave. Free for Farm Bureau members and $20 for non-members. Call
609-393-7163.
Contact Michelle Brunetti Post:
609-272-7219
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