Farmland Assessment Prerequisites
Land may be eligible for "farmland assessment" when it meets all the following qualifications:
a. Actively devoted to agricultural or horticultural use for at least 2 successive years immediately proceeding the tax year for which "farmland assessment" is requested.
b. The area of land actively devoted, exclusive of the land, which the farmhouse is located, is not less than 5 acres.
c. Gross sales $1,000.00 annually for the first 5 acres and $5.00 for each additional acre. Effective tax year 2015 Gross sales $1,000 annually for the first 5 acres and $5.00 for each additional acre. Woodland Management Plans remains at $500 for the first 5 acres and $5.00 for each additional acre.
d. Annually file an Application and Gross Sales form, by the owner, on or before August 1 of the year immediately proceeding the tax year.
e. Gross Sales Form MUST be submitted with each application.
f. Farms with acreage of less than 7 acres must submit a descriptive narrative of agricultural/horticultural uses, a sketch of their location and number of acres devoted with the application
Representatives from the Assessor's Office are required to perform on-site inspections of all properties applying for and or claiming farmland assessment, for qualifying activities.
When land, which is in agricultural or horticultural use and is being valued under the Farmland Assessment Act, is applied to a use other than agricultural or horticultural, it is subject to additional taxes, referred to as roll-back taxes. Roll-Back Taxes are the amount equal to the difference, if any, between the taxes paid or payable on the basis of "Farmland Assessment" and the taxes that would have been paid or payable had the land been valued, assessed and taxed as other land in the taxing district.
In the case of a change in use, the roll-back taxes shall be applicable in the year in which the change took place and in such of the 2 tax years, immediately preceding, in which the land was valued, assessed and taxed under the Farmland Assessment Act.
The Assessor's Office mails annually on or before July 1st, Farmland Applications to property owners currently receiving farmland assessment. Property owners who wish to apply for Farmland Assessment should contact the Assessor's Office for an application.
The deadline for file a Farmland Application is August 1st.
Additional information regarding the requirements for the Farmland Assessment Act can be found at www.state.nj.us/agriculture