This bill amends the Farmland Assessment Act of 1964 to clarify the conditions under which roll-back taxes are applied to land previously used for agricultural or horticultural purposes. Specifically, it states that the mere cessation of such activities does not trigger roll-back taxes unless there is an active conversion of the land to a non-agricultural or non-horticultural use. Roll-back taxes are defined as the difference between the taxes paid on the land as farmland and the taxes that would have been owed if the land had been assessed as other property in the taxing district. These taxes will be assessed for the year of change in use and the two preceding tax years.

Additionally, the bill specifies that land valued, assessed, and taxed under the Farmland Assessment Act will not be subject to roll-back taxes if it is acquired by the State, local government units, qualifying tax-exempt nonprofit organizations, or the Palisades Interstate Park Commission for recreation and conservation purposes. This amendment aligns the law with a 1981 New Jersey Tax Court decision, which emphasized that roll-back provisions should not impose an undue tax burden on landowners who can no longer actively farm their property due to age or disability.

Statutes affected:
Introduced: 54:4-23.8