Current through Register Vol. 56, No. 18, September 16, 2024
(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
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.
