State Tax Laws > Property Taxes > Summary > New Jersey
For the complete text of New Jersey statutes please refer to the New Jersey State Legislature. For additional property tax information please refer to the New Jersey Department of Taxation.
Property Classification:
For property tax purposes forest land falls under the Farmland Assessment Act of 1964.
Qualifications:
Under the Farmland Assessment Act the land must:
1. The land must have been actively devoted to agricultural or horticultural use for the two successive years immediately preceding the tax year for which farmland assessment is requested.
2. The area must be at least five (5) acres in size.
3. Gross sales of agricultural of horticultural products (in addition to any payments received under a soil conservation program) must average at least $500 plus additional $5 per cropland acre and $.50 per woodland acre for each acre over 5 or there must be clear evidence of anticipated yearly gross sales and such payments amounting to at least your minimum gross sales requirement.
Agricultural use - Land is considered to be in agricultural use when devoted to the production for sale of plants and animals useful to man, including but not limited to: forages and sod crops; grains and feed crops; dairy animals and dairy products; poultry and poultry products; the breeding, boarding, raising, rehabilitating, training or grazing of livestock such as beef cattle, sheep, swine, horses, ponies, mules or goats; bees and apiary products; fur animals; trees and forest products; or when meeting the requirements of a soil conservation program under an agreement with the federal government. (Sec. 54:4-23.3)
Land which is devoted exclusively to the production for sale of tree and forest products other than Christmas trees, and is not "appurtenant woodland," shall not be deemed to be in agricultural use unless the landowner fulfills the following additional conditions:
a. The landowner establishes and complies with the provisions of a woodland management plan for this land prepared in accordance with policies, guidelines and practices approved by the Division of Parks and Forestry in the Department of Environmental Protection, in consultation with the Department of Agriculture and the Dean of Cook College at Rutgers, The State University, which policies, guidelines and practices are designed to eliminate excessive and unnecessary cutting.
b. The landowner and a forester from a list of foresters approved by the Department of Environmental Protection annually attest to compliance with subsection a. of this section; and
c. The landowner annually submits an application to the assessor accompanied by a copy of the plan established pursuant to subsection a. of this section; written documentation of compliance with subsection b. of this section; a supplementary woodland data form setting forth woodland management actions taken in the pre-tax year, the type of quantity of tree and forest products sold, and the amount of income received or anticipated for same; a map of land showing the location of the activity and the soil group classes of the land; and other pertinent information required by the Director of the Division of Taxation as part of the application for valuation, assessment and taxation as farmland. The landowner shall, at the same time, submit to the Commissioner of the Department of Environmental Protection an exact copy of the application and accompanying information submitted to the assessor pursuant to this subsection.
An "appurtenant woodland" is a wooded piece of property contiguous to, part of or beneficial to a tract of land that is at least five acres and is devoted to agricultural or horticultural use. Land is deemed to be in horticultural use if devoted to the production for sale of fruits of all kinds, including grapes, nuts and berries; vegetables; nursery, floral, ornamental and greenhouse products; or when meeting the requirements of a soil conservation program under an agreement with the federal government.
Application - In order for land to be assessed under the Farmland Assessment Act, a landowner must annually file an application (Form FA-1) with the assessor of the taxing district where the land is located before August 1 of the pretax year.
Woodland Management Plan (WMP) - If your woodland acreage total is more than 50 percent of your total agricultural and horticultural lands, you will need a WMP to qualify your additional woodlands under the act.
Change in use - When land assessed under the act is changed to a use other than agricultural or horticultural, it is subject to additional or roll-back taxes. The land is subject to the payment of roll-back taxes for the year in which the change in use of the land occurs and in each of the immediately preceding two tax years in which the land was assessed under the act.
Valuation and Assessment:
Agricultural land is valued and assessed based on its current use, not the highest and best use. In valuing agricultural land the State Farmland Evaluation Advisory Committee is responsible for classifying land based on its productive capabilities. Forestland is classified as either "appurtenant woodland" or "non-appurtenant woodland."
Once a land value has been determined by the Committee based on its classification this value is adjusted for the productivity ratings of the soil. It is these values that are used for assessment purposes. The higher the soil productivity rating the higher the value on a per acre basis.
The local property tax rate is determined each year by the County Board of Taxation for each municipality by relating the total amount of tax levy to the total of all assessed valuations taxable expressed in $1 per $100 of taxable assessed value, the tax rate is a multiplier for use in determining the amount of tax levied upon each property.
Severance or Yield Tax:
The state of New Jersey does not have a severance or yield tax in timber or timber products.