Changes certain allocations and amounts of constitutionally dedicated CBT revenues for Fiscal Year 2026 and thereafter; authorizes Garden State Preservation Trust and local governments to acquire lands in urban areas for agricultural or horticultural purposes.

2024-2025 Regular Session Introduced by Linda Carter and 5 co-sponsors

Bill A 5627 reallocates Corporate Business Tax revenues to support urban agriculture, allowing local governments to acquire land for farming in New Jersey's cities.

Introduced in the Assembly, Referred to Assembly Commerce, Economic Development and Agriculture Committee

#bustaxes #openspace

Summary of Bill A 5627

Bill Number: A 5627
Title: Changes certain allocations and amounts of constitutionally dedicated CBT revenues for Fiscal Year 2026 and thereafter; authorizes Garden State Preservation Trust and local governments to acquire lands in urban areas for agricultural or horticultural purposes.
Status: Introduced in the Assembly, Referred to Assembly Commerce, Economic Development and Agriculture Committee
Introduced: May 08, 2025
Classification: Bill
Subject: Business Taxes, Open Space

Purpose and Intent

Bill A 5627 aims to modify the allocation of constitutionally dedicated revenues from the Corporate Business Tax (CBT) for the fiscal year 2026 and beyond. The bill also empowers the Garden State Preservation Trust and local governments to acquire lands in urban areas specifically for agricultural or horticultural purposes. This initiative seeks to enhance urban agriculture and promote sustainable land use in New Jersey.

Key Provisions

Revised Allocation of CBT Revenues:

The bill specifies the distribution of CBT revenues credited to the Preserve New Jersey Fund Account starting in FY 2026:
- 62% to the Preserve New Jersey Green Acres Fund
- 26% to the Preserve New Jersey Farmland Preservation Fund
- 7% to the Preserve New Jersey Historic Preservation Fund
- 5% to the newly established Preserve New Jersey Urban Agriculture and Horticulture Fund
An initial deposit of $25 million will be allocated to the Urban Agriculture and Horticulture Fund on July 1 following the bill's effective date.

Acquisition of Urban Lands:

The bill authorizes the Garden State Preservation Trust and local governments to acquire urban lands for agricultural or horticultural uses. This includes a broad definition of agricultural activities, such as the production of plants, animals, and various crops.

Review and Recommendations:

The Garden State Preservation Trust is tasked with conducting annual reviews of funding allocations for various preservation programs, including public hearings to gather input on future funding needs.

Impact

Beneficiaries:

Urban communities in New Jersey will benefit from increased access to agricultural land, potentially enhancing local food production and green space.
Farmers and agricultural organizations may receive more support through the reallocation of funds, promoting sustainable practices and preservation efforts.

Local Governments:

Local governments will gain the authority to acquire lands for agricultural purposes, which could lead to increased urban farming initiatives and community gardens.

Procedural Aspects

The bill was introduced on May 8, 2025, and has been referred to the Assembly Commerce, Economic Development and Agriculture Committee for further consideration.

A companion bill, S 4350, is also under consideration in the Senate, indicating a parallel legislative effort to address similar issues.

This summary provides an overview of Bill A 5627, highlighting its objectives, key provisions, and potential impacts on urban agriculture and land preservation in New Jersey.