This bill amends the Farmland Assessment Act of 1964 to clarify the conditions under which roll-back taxes are applied to land previously valued, assessed, and taxed as agricultural or horticultural. Specifically, it states that the mere cessation of agricultural or horticultural activity does not trigger roll-back taxes unless there is an active conversion of the land to a non-agricultural or non-horticultural use. The bill also defines roll-back taxes as the difference between the taxes paid based on the farmland valuation and the taxes that would have been due if the land had been taxed as other properties in the district for the current tax year and the two preceding years.

Additionally, the bill specifies that land acquired by the State, local government units, qualifying tax-exempt nonprofit organizations, or the Palisades Interstate Park Commission for recreation and conservation purposes will not be subject to roll-back taxes. This amendment aligns with a 1981 New Jersey Tax Court decision in Jackson Twp. v. Paolin, which emphasized that roll-back provisions should not impose an additional tax burden on landowners who can no longer actively farm due to age or disability.

Statutes affected:
Introduced: 54:4-23.8