N.J. Admin. Code § 2:77-5.5

Current through Register Vol. 56, No. 24, December 18, 2024

Section 2:77-5.5 - Valuation of development potential

(a) The Board may determine the fair market value of the development potential by either appraisal, municipal averaging based upon appraisal data, or by a formula supported by appraisal data.

(b) In the event that the Board determines to establish the fair market value of the development potential by appraisal, it shall select two independent professional appraisers from the list of appraisers adopted by the State Agriculture Development Committee pursuant to N.J.A.C. 2:76-6.7.

1. The appraisers shall utilize the standards as described in N.J.A.C. 2:77-8 for completing their appraisals.

2. Upon completion of the appraisals, the appraisers shall forward a copy of the appraisal report, in digital format, to the Board.

3. The Board shall appoint a review appraiser to evaluate the two appraisals and establish a recommended fair market value of the development potential of the property.

i. The review appraisal shall be done in accordance with the Appraisal Handbook Standards contained at N.J.A.C. 2:77-8.

4. The Board shall have final authority for certifying the fair market value of the development potential.

5. The Board's certified fair market value of the development potential shall not be greater than the highest independent appraised value of the development potential.

6. The Board may find an appraisal invalid if it does not comply with the Appraisal Handbook Standards at N.J.A.C. 2:77-8.

i. If an appraisal is found to be invalid, the Board shall reject the application for which the appraisal was conducted.

ii. If the appraisals are found to be valid, the Board shall certify the fair market value of the development potential.

(c) In the event that the Board determines to establish the fair market value of the development potential of the property by municipal averaging or formula, the Board shall utilize the standards as described in N.J.A.C. 2:77-8.

(d) In the event that a county or municipality has applied to sell development potential to the Board and has conducted a valuation study pursuant to N.J.A.C. 2:77-8 to determine the development potential value, the Board shall review the study to determine if appropriate standards were utilized in establishing the development potential values.

1. If the Board finds that the valuation study was conducted pursuant to N.J.A.C. 2:77-8 and results in justified development potential values, the Board may utilize the study to certify the fair market value of the development potential.

i. The Board may conduct an update to the development potential valuation to establish a certified fair market value if the period between the county's or municipality's acquisition of the development potential and the submission of the application to the Board exceeds one year or if market value fluctuations are evident.

N.J. Admin. Code § 2:77-5.5

Amended by R.2013 d.139, effective 12/16/2013.
See: 45 N.J.R. 495(a), 45 N.J.R. 2541(a).
In (b)2, substituted "a" for "one original and one", and inserted ", in digital format,".