Jersey closes developers’ favorite tax loophole

New York /
Jun.June 08, 2012 02:30 PM

New legislation approved by the State Senate raises the minimum income land owners must generate from farmland to qualify for highly discounted property taxes, the New York Times reported. Farmers now need to generate $1,000 annually selling products from the first five acres, and an extra $5 for each additional acre, to qualify for exemptions that sometimes reach as high as 98 percent.

This affects wealthy estate owners, including Jon Bon Jovi and Bruce Springsteen, and developers, who run small farm operations on their vast properties to qualify for the exemption.

“The biggest farmers in New Jersey are developers,” said Jeff Tittel, president of the New Jersey chapter of the Sierra Club. “They buy property during a bust for a low price, then they use the Farmland Assessment to land-bank it, sitting on it until the next boom, when they can build.”

Studies have found that a $1,000 minimum would make ineligible 47,368 acres out of the state’s 982,000 acres of farmland — all for a gain of about $2 million. But many expect that landowners will “find everyway possible” to meet the threshhold. New Jersey’s new minimum is still far less than New York’s of $10,000 in income per seven acres.

“Those of us who do production agriculture are not too worried about the new threshold,” said Ryck Suydam, vice president of the New Jersey Farm Bureau. “If you’re not grossing $1,000, you’re not trying too hard.” [NYT]


Related Articles

arrow_forward_ios
Gov. Kathy Hochul (Getty, iStock)
Hochul vetoes bill to close New York condo tax loophole
Hochul vetoes bill to close New York condo tax loophole
New York City mayor Eric Adams and 936 Lafayette Ave (Getty, Google Maps)
Here’s how much NYC mayor made from his Brooklyn home
Here’s how much NYC mayor made from his Brooklyn home
Michigan developer Scott Chappelle (Scott Chappelle, Illustration by The Real Deal; Getty)
Michigan developer sentenced to prison for tax evasion
Michigan developer sentenced to prison for tax evasion
From left: Boston Mayor Michelle Wu and South Boston Senator Nick Collins with Boston City Hall
Controversial transfer tax bill advances in Boston
Controversial transfer tax bill advances in Boston
34-24 Hunters Point Ave
City accuses its landlord of gaming property taxes
City accuses its landlord of gaming property taxes
Senator Chuck Schumer and Senator Joe Manchin (Illustration by Kevin Cifuentes for The Real Deal with Getty)
Manchin-Schumer deal closes real estate tax loophole
Manchin-Schumer deal closes real estate tax loophole
L+M’s Ron Moelis and 180 Broome Street (L+M, City Realty, iStock)
L+M accused of overcharging tenants at 421a building
L+M accused of overcharging tenants at 421a building
From left: Mayor Eric Adams, Governor Kathy Hochul, and Assemblymember Edward Braunstein (Getty Images, Assembly District 26, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Say goodbye to another property tax break
Say goodbye to another property tax break
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...