Trenton— Legislation long-championed by Senator Jennifer Beck (R- Monmouth) and Senate President Steve Sweeney (D- Gloucester/Cumberland/Salem) to prevent abuse of the state’s farmland assessment law has cleared the final hurdle to passage by the full Senate. The Legislation, S-589, was approved the Senate Budget and Appropriations Committee.
“The current threshold of $500 in agricultural sales set forth in New Jersey’s farmland assessment law has not been increased since its inception and is easily abused,” said Beck. “This bill modernizes the law to better ensure that only those who actively work the land receive the 98% property tax break on their property.”
“Clearly this program is being taken advantage of and it’s the taxpayers who ultimately lose the most. It’s long past time we update the farmland assessment law. This protects both real farmers and the taxpayers of New Jersey, ” said Sweeney.
The bill would boost the threshold of sales derived from farming activity to $1000 per year from the current $500, and provide for a review of the sales threshold every three years. This number was selected based on a 2007 study by Rutgers which calculated how many farms would be disqualified at minimum revenue qualifications of $1000, $2500 and $10, 000. A $10, 000 was estimated to take 398, 093 of New Jersey`s approximately 982, 000 acres of farmland off the preservation rolls.
The legislation also would require program applicants to submit evidence of agricultural sales and/or income to the Department of Agriculture, and require tax assessors to undergo training in farmland assessment as a condition of licensure. Most importantly, the State Division of Taxation and State Board of Agriculture would issue guidelines to tax assessors to aid them in defining legitimate farming activity.
Abusers of the program would face a $5000 fine, in addition to restitution of all taxes inappropriately avoided on property fraudulently claimed under the assessment exemption and other penalties.
“There is something wrong when an individual can sell three cords of firewood to himself and claim the same tax break as farmers producing legitimate agricultural output,” Beck continued. “The abuse of this program is well documented in the press and by the State Auditor and needs to end.”
The bill, S589, that Senator Jennifer Beck and Senate President Steve Sweeney have sponsored to address New Jersey’s “Fake Farms” will not close any fake farms and will not increase property tax revenues. It will create new bureaucracy on the state, county and municipal levels of government. It will increase the costs of municipalities evaluating what is a farm and what is not a farm.
New Jersey’s farmland assessment law dates back to 1964. It provides that properties of 5 acres that generate revenue and payments of $500 from crops or livestock be assessed as farms for property tax purposes. Properties over 5 acres must produce $5 per acre to qualify under the proposed law. $.50 per acre for wetlands. Dogs are excluded as livestock, President Obama’s childhood dietary habits notwithstanding.
S589, let’s call it “Karcher’s Law,” would increase the minimum level of revenue a “farm” must produce to $1000.
Beck used former Senator Ellen Karcher’s use of the farmland assessment law as a major issue in her 2007 campaign to replace Karcher in the Senate. Karcher classifies 6 acres of her 9 acre Marlboro home as a Christmas tree farm, saving $14,000 in property taxes.
I can see the campaign literature now. “We ended fake farms by doubling the required production of these so called farms.” Gullible homeowners will nod and be grateful that their property taxes increased only 3% while the lawyers, lobbyists, rock stars and politicians who avoid tens of thousands in property taxes send in their campaign contributions.
Products that cost $500 in 1964 would cost $3,711.05 today. 500 of today’s dollars would have bought you $67.37 of merchandise in 1964.
Clearly, increasing the required revenue generated from a “farm” from $500 to $1000 will not end the abuse. Increasing the required revenue to the inflation adjusted $3,711.05 will not end it either.
There is a provision in the proposed law that creates a State Farmland Evaluation Advisory Committee comprised of the Director of the Division of Taxation, the Dean of Rutgers College of Agriculture and the Secretary of Agriculture. The committee will conduct periodic reviews of the minimum farm revenue and payment requirements. Maybe Sweeney and Beck are counting on the bureaucrats to come up with an equitable solution to the problem. Not likely, but we can’t say for sure as neither Senator returned a call asking for an explanation of the bill.
There is another provision of the proposed bill that eliminates the “roll back tax” for fake farms that are declassified. Under the current farmland assessment law, properties that are declassified as farms are subject to retroactive property taxes at a fair market valuation for a number of years. The proposed law would only tax declassified farms at fair market value going forward, so long as the property owner continues their fake farming. Maybe this is the real intended teeth of the proposed bill. We’ll ask Beck or Sweeney if either of them calls back.
S589 was passed by the Senate Environment and Energy Committee on Thursday and sent to the Senate Budget and Appropriations Committee.
Hopefully the Senate Budget and Appropriation Committee, of which Beck is a member, will amend the bill so that it really does eliminate the practice of middle class homeowners subsidizing hobby farms of wealthy and connected landowners.
Sweeney's childishness manifest with an outbreak of acne. Photo credit APP.com
Three weeks after his profanity laced rant over Governor Chris Christie’s budget cuts, during which he threatened violence towards the Governor, Senate President Steve Sweeney says he’s still too angry to engage in the State’s business and “jokingly” says he hasn’t talked to Christie yet because there might not be enough troopers available to police the eventual face to face they’ll have.
Christie has proposed legislation that would reverse the cuts to “transitional aid” for New Jersey’s distressed urban areas. Sweeny said “people will die” as a result of those cuts, yet he has taken no action on the reversal Christie proposed.
As a State employee, Sweeney has first class health insurance. He should use it and get some anger management treatment.
Sweeney told NJPM that shared services and education reform are next up on the Statehouse agenda, but not before he gets over his issues.
Sweeney also said he’s suspicious of Christie’s budget. He thinks Christie designed a budget that will get New Jersey’s fiscal house in order so that he can lower taxes in the next budget. In other words, Sweeney suspects Christie of working to keep his campaign promises.
Senate President Steve Sweeney said his Republican colleagues in the Senate voted to put people in urban areas to death when they failed to vote for the Democrats attempt to override Governor Christie’s line item veto of $139 million in transition aid to the cites, according to a report in The Star Ledger.
“They just voted to basically put people to death in urban areas by not funding these programs,” Senate President Stephen Sweeney (D-Gloucester) said after Republicans blocked an attempt to restore $139 million in aid to 21 cities and $50 million in funds for public safety in 150 municipalities.
Will Sweeney let those people die when Governor Christie offers to restore all or part of the aid to cities in exchange for Sweeney’s support of his education reforms and the rest of the property tax “tool kit?”
Will Christie get all that he wants from Sweeney or will he settle for a compromise?
July and August are usually a quiet time in Trenton, especially in a year with legislative elections. That is not likely to be the case this year.
Senate President Steve Sweeney called the upper house into session today…it can’t honestly be said that he called it “to order”…to vote on 15 of Governor Christie’s 39 line item vetoes in the State Budget.
There was grand standing, name calling, yelling and screaming, but in the end all of the override votes failed, just as everyone knew they would before the show started. Only Senator Jennifer Beck broke partisan ranks to vote with the Democrats to increase Planned Parenthood funding by $7.5 million. The measure still failed.
Tomorrow the Senate will repeat the process.
Nothing real will happen until Governor Christie returns from vacation on Friday.
Senate President Steve Sweeney’s line of bull nearly cost him his life today as a lightning stike just missed him during an on camera interview with the Philadelphia Fox-TV affiliate.
Sweeney’s been lying all week. Not just about the budget and the Governor’s prick. I invited him onto the LaRossa and Gallagher “Real Jersey Guys” Radio Show to talk about the State budget and his now famous remarks to Tom Moran about the Governor. Rather than turn us down because we would challenge him, Sweeney’s spokesman Chris Donnelly said the Senate President was booked all week and suggestted we try at another time. Since then Sweeney’s been a rotten media whore.
That’s ok, former Senator Dick LaRossa and I did fine without him. Here’s a recording of the show:
The bromance between Governor Chris Christie and Senate President Steve Sweeney appears to be on the rocks.
In recent weeks Christie has shifted his rhetoric from slamming the “do nothing” Democratic legislature to singing the praises of Sweeney for compromising with him over “landmark” pension and benefit reforms which Christie declared on national TV was a “model for America.”
The pension and benefit reforms were signed into law last Tuesday during a Christie-Sweeney love fest ceremony at the Wall Memorial in Trenton. That left only two days for the legislature and the Governor to settle on a State budget.
Rather than negotiate with Christie over elements of the budget he had proposed, the Democratic legislature passed their own budget that exceeded the amount of revenue that Christie had certified by $600 million and increased the “millionaires tax” by 20%.
Christie received the Democrats budget on Wednesday evening. His choices were to veteo it outright, conditionally veto it, either of which could have led to a government shut down, or to use his line item veto power to cut specific spending items that the legislature had passed.
Assemblyman Declan O’Scanlon, the Assembly Republican Budget Officer, said of the Democrats, “they played chicken with the wrong guy.”
Christie made $900 million in line item cuts that have the Democrats squealing like a Ned Beatty in Deliverance.
Sweeney reacted with a profanity laced interview with Tom Moran of The Star Ledger. Sweeney called Christie “a rotten prick” and said he wanted to “punch him in the head.” The Senate President likened the Governor to “Mr. Potter from ‘It’s a Wonderful Life,” the mean old bastard who screws everybody.”
Former Senator Richard LaRossa and I will be talking about the budget and the political fallout of the budget this afternoon on our radio show, LaRossa and Gallagher: The Real Jersey Guys on WIFI 1460 AM on your radio dial and here on your computer or smart phone.
As of now we don’t have any guests scheduled for the program. We hope you will call in to the show, 609-447-0236, with your questions and comments about the budget, the Christie-Sweeney tiff or anything else New Jersey you want to talk about.
Republican Governor Chris Christie proposed pension and benefit reforms that would have resulted in a $300 million budget savings in the coming fiscal year and that actuaries said would have corrected the system.
Senate President Stephen Sweeney and Assembly Speaker Sheila Oliver, Democrats, gave Christie a “compromise” that results in a $9 million budget savings in the coming year and that actuaries say doesn’t go far enough.
Christie and the Republicans in the legislature are celebrating. The media is calling the bill a landmark reform.
The Democrats and their union benefactors are having a civil war.
There is a fifth dimension, beyond that which is known to man. It is a dimension as vast as space and as timeless as infinity. It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man’s fears and the summit of his knowledge. This is the dimension of imagination. It is an area which we callThe Twilight Zone.
Governor Chris Christie and Senate President Steve Sweeney announced that they had reached a compromise over the nomination of Anne Patterson to the NJ Supreme Court.
Christie nominated Patterson to the court one year ago today to fill the seek of John Wallace. Wallace’s term was expiring but he had not reached the age of mandatory retirement. Christie acted within his constitutional authority but broke with tradition by not reappointing Wallace.
Christie’s Democratic critics, in the legislature and the media, charged that the governor was interfering with the independence of the judiciary. Christie countered that he was fulfilling his campaign promise to reshape the court which has a long history of overstepping its bounds and legislating from the bench, especially with the Abbott decision which mandates education spending and the Mt. Laurel decision which mandates the development of affordable housing. These two judicial decisions are responsible for New Jersey’s highest in the nation property taxes.
Sweeney pledged that Patterson would not get a hearing in the Senate and that her nomination would not be voted on until Wallace, who hails from Sweeney’s home county of Gloucester, reached the age of retirement; March of 2012. For a year the Wallace seat has filled by appellate Judge Edwin Stern who was appointed by Chief Justice Stuart Rabner as a temporary fill-in.
As a result of the “compromise” announced yesterday between Christie and Sweeney, the governor will withdraw Patterson’s nomination to Wallace seat and nominate her for the seat of retiring Justice Roberto Rivera-Sota. Sweeney pledged a fair hearing for Patterson, and that timely hearings will be held for the Wallace seat and the seat of
Justice Virginia Long who reaches the mandatory retirement age in 2012.
I fail to see the “deal” here. Where’s the compromise? What did Christie get? Christie could have withdrawn Patterson’s nomination for Wallace’s seat and nominated her for Rivera-Soto’s seat without consulting Sweeney. Sweeney keeps the Wallace seat filled by Stern until March. Was Sweeney threatening to hold up the nominations to replace Wallace and Long beyond their retirement dates? Would Sweeney allow three seats on the seven member court to be held by temporary Justices appointed by Rabner?
The other thing I don’t like about this deal capitulation, is that it is an indication that Christie assumes that Sweeney will be Senate President next year. While that may be a realistic expectation given the new gerrymandered legislative map, it is disappointing to think that Christie, as the leader of the Republican party, has already given up on trying to win control of the Senate in the legislative election this November.
If Christie has given up on winning control of the Senate, who am I to argue that it is possible?
The Democratic leadership of the State Legislature went along with Governor Chris Christie in capping NJ’s property tax increases at 2% last July with the understanding that they would get to work on and pass the governor’s “tool kit” which enables municipal leaders to responsibly reduce the cost of local government in September.
Rather than focusing on municipal government reform, the Democratic leadership is focusing on the Christie administrations failed “Race to the Top” application for $400 million in federal education dollars. Nothing that the Democrats discover in their “Race to the Top” circus will bring NJ the $400 million the Christie administration applied for. That $400 million is not coming, just as Frank Pallone’s $400 million to count fish is not coming.
Trenton Democrats need to put policy over politics. They can hold hearings on the Race to the Top snafu after they have passed the tool kit. They will get just as much political mileage and just as much money (none) from Race to the Top hearings held in December or January as they will from hearings held now.
Failure to pass the tool kit will lead to massive municipal layoffs and service cuts throughout New Jersey while property taxes increase by 2%. This week, just in Monmouth County, we have seen two clear examples of why the tool kit is necessary. In Belmar a mediator awarded the police department a 15% salary increase while Highlands announced that they might layoff 12 of their 53 employees, including three police officers. There will be literally hundreds of stories like this throughout the state if the legislature doesn’t pass the tool kit legislation before municipal leaders start crafting their 2011-2012 budgets.
Maybe that is what Senate President Steve Sweeney and Assembly Speaker Sheila Oliver want to happen. Maybe their focus is on next year’s state legislative elections and they think they have a better chance of keeping control of the legislature if New Jersey’s municipalities are in chaos next year with rising crime and garbage piling up on the streets because only the most highly paid municipal employees are still working while their former junior colleagues are collecting unemployment or moving out of state to take lower paying government jobs elsewhere.
Sweeney and Oliver wouldn’t do that, would they? Will it work if they do? I don’t think so.
