Trump’s N.J. ‘Goat Farmer’ Tax Break: Do You Qualify?

Do you own goats or chickens? Grow corn or tomatoes? Have a Christmas tree farm? These are just a few ways that you might qualify for the same New Jersey tax break that reportedly saves President Donald Trump tens of thousands of dollars in property taxes every year.

Here’s how it works.

Trump keeps a small herd of goats on his golf courses in Colts Neck and Bedminster, which combined with hay farming and wood cutting done on the property, allows him to qualify for a special tax break under New Jersey's “Farmland Assessment Act.”

The program is meant as an incentive to keep the state from being overdeveloped and to encourage private ownership of large amounts of open land. The potential savings are huge: some property owners can nab tax exemptions of up to 98 percent.

While it’s unknown exactly how much Trump saves, a recent Wall Street Journal report estimated the tax break could mean he pays less than $1,000 on land that would otherwise be taxed at $80,000 a year.

Former Gov. Christine Todd Whitman and Bruce Springsteen have both taken advantage of the same tax credit, according to the report.

• See related article: Donald Trump, New Jersey Goat Herder?

DO YOU QUALIFY?

According to the New Jersey Department of Agriculture, here are the two biggest requirements you need to claim the same tax break as Trump:

• “Must own five, contiguous acres of land actively devoted to an agricultural or horticultural use.”
• “Gross sales of products from the land must average at least $1,000 per year for the first five acres, plus an average of $5 per acre for each [additional] acre.”

With 43,560 square feet to an acre (about three-quarters of a football field), it's probably a stretch to think your backyard chicken coop will qualify as a "farm."

If you do happen to own five acres of land that you think might qualify, it gets a little more complicated. For example, ground located underneath a farmhouse isn’t eligible. But land used for “biomass, solar, or wind energy generation” may likely cut the mustard.

See a detailed breakdown of what qualifies and what doesn’t here.

THESE PROPERTIES QUALIFY

According to the NJ Department of Agriculture, here are some of the properties that would qualify for the tax break:

• “Land on which livestock is boarded, raised, pastured, rehabilitated, trained, or grazed and enclosed by a fence.”
• “Land that is used for boarding, rehabilitating or training livestock for a fee.”
• “Land on which crops are grown for on-farm use, but not including land that is used to produce crops only for personal consumption.”
• “Land on which poultry are housed or ranged.”
• “Land on which trees and forest products are produced for sale.”

THESE PROPERTIES DON’T

According to the NJ Department of Agriculture, these properties don’t qualify for the tax break:

• “Five acres of land are unmanaged but naturally produce wildflowers, berries, herbs, and firewood. The owner sells between $1,750 and $1,900 of plant materials and firewood annually from the parcel. The parcel of land is ineligible for Farmland Assessment because the land was not in a managed agricultural or horticultural use.”
• “Three horses and a pony are kept by an owner on his land for pleasure riding. The animals pasture on 14 acres, which have an imputed grazing value of $1,624. The imputed grazing value in this county is $116 per acre. Although the imputed grazing value exceeds the income requirements for qualification, the land nevertheless would be ineligible for farmland assessment since the livestock are not raised for sale, the livestock do not produce products for sale, and the grazing is not connected with breeding, raising, boarding, rehabilitating or training activities.”

TRUMP AND TAX REFORM

The Trump administration and several GOP heavyweights have proposed plans to overhaul the federal tax code as part of its push for “economic growth and American jobs.” However, details about the possible tax reforms have been spotty.

The administration’s proposal includes cutting corporate taxes to 15 percent from their current level of 35 percent. The plan also includes eliminating some personal deductions and other "loopholes.”

House Minority Leader Nancy Pelosi previously said that the plan is "short on details and long on giveaways to big corporations and billionaires."

• See related article: Trump Tax Plans Announced But Few Details On Offer
• See related article: 5 Questions About President Trump's Tax Plan

Ironically, in New Jersey – where Trump claims his strange-yet-true farm tax deduction – the administration’s reform plan would include the elimination of a federal property tax deduction that saves Garden State residents an average of $3,522 a year.

• See related article: Donald Trump Plans To Ditch Tax Break That Saves NJ Residents Thousands

Patch has reached out to the White House press office for comment on whether the administration’s tax reform plans would affect programs such as the New Jersey Farmland Assessment Act, or President Trump's future as a goat herder. We will include any reply we receive in this article.

Send feedback and news tips to eric.kiefer@patch.com

Photo 1: Gage Skidmore, Flickr

Photo 2: Rebecca Siegel, Flickr