(also known as Act 319 or "Clean and
Green")
(72 PA. STAT. §§ 5490.1-5490.13)
(Current as of July 2009)
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§
5490.1. Short title
This
act shall be known and may be cited as the “Pennsylvania Farmland and Forest
Land
Assessment
Act of 1974.”
§
5490.2. Definitions
As
used in this act, the following words and phrases shall have the meanings
ascribed to
them
in this section unless the context obviously otherwise requires:
“Agricultural
commodity.” Any of the following:
(1)
Agricultural, apicultural, aquacultural, horticultural, floricultural,
silvicultural,
viticultural
and dairy products.
(2)
Pasture.
(3)
Livestock and the products thereof.
(4)
Ranch-raised furbearing animals and the products thereof.
(5)
Poultry and the products of poultry.
(6) Products commonly raised or produced on farms which are:
(i)
intended for human consumption; or
(ii)
transported or intended to be transported in commerce.
(7)
Processed or manufactured products of products commonly raised or produced on
farms
which are:
(i)
intended for human consumption; or
(ii)
transported or intended to be transported in commerce.
“Agricultural
reserve.” Noncommercial open space lands used for outdoor recreation or
the
enjoyment of scenic or natural beauty and open to the public for such use,
without
charge
or fee, on a nondiscriminatory basis.
“Agricultural
use.” Land which is used for the purpose of producing an agricultural
commodity
or is devoted to and meets the requirements and qualifications for payments
or
other compensation pursuant to a soil conservation program under an agreement
with
an
agency of the Federal Government. The term includes any farmstead land on the
tract.
The
term includes a woodlot and land which is rented to another person and used for
the
purpose
of producing an agricultural commodity.
“Agritainment.”
Farm-related tourism or farm-related entertainment activities, which
are
permitted or authorized by a landowner in return for a fee on agricultural land
for
recreational
or educational purposes. The term includes, but is not limited to, corn mazes,
hay
mazes, farm tours and hay rides. The term does not include activities
authorized
under
section 8(d).
“Capitalization
rate.” The percentage rate used to convert income to value, as
determined
by the most recent five-year rolling average of fifteen-year fixed loan
interest
rates
offered to landowners by the Federal Agricultural Mortgage Corporation or other
similar
Federal agricultural lending institution, adjusted to include the landowner's
risk of
investment
and the effective tax rate.
“Contiguous
tract.” All portions of one operational unit as described in the deed or
deeds,
whether or not the portions are divided by streams, public roads or bridges and
whether
or not the portions are described as multiple tax parcels, tracts, purparts or
other
property
identifiers. The term includes supportive lands, such as unpaved field access
roads,
drainage areas, border strips, hedgerows, submerged lands, marshes, ponds and
streams.
“Contributory
value of farm building.” The value of the farm building as an allocated
portion
of the total fair market value assigned to the tract, irrespective of
replacement
cost
of the building.
“County
commissioners.” The board of county commissioners or other similar body in
home
rule charter counties.
“Curtilage.”
The land surrounding a residential structure and farm building used for a
yard,
driveway, on-lot sewage system or access to any building on the tract.
“Department.”
The Department of Agriculture of the Commonwealth.
“Farm
building.” A structure utilized to store, maintain or house farm
implements,
agricultural
commodities or crops, livestock and livestock products, as defined in the act
of
June 30, 1981 (P.L. 128, No. 43), known as the “Agricultural Area Security
Law.”
“Farmstead
land.” Any curtilage and land situated under a residence, farm building or
other
building which supports a residence, including a residential garage or
workshop.
“Forest
reserve.” Land, ten acres or more, stocked by forest trees of any size and
capable
of producing timber or other wood products.
“Income
approach.” The method of valuation which uses a capitalization rate to
convert
annual
net income to an estimate of present value. Present value is equal to the net
annual
return
to land divided by the capitalization rate.
“Land
use category.” Agricultural use, agricultural reserve or forest reserve.
“Net
return to land.” Annual net income per acre after operating expenses are
subtracted
from gross income. Calculation of operating expenses shall not include interest
or
principal payments.
“Recreational activity.” Includes, but is not limited to:
(1)
Hunting.
(2)
Fishing.
(3)
Swimming.
(4)
Access for boating.
(5)
Animal riding.
(6)
Camping.
(7)
Picnicking.
(8)
Hiking.
(9)
Agritainment activities.
(10)
Operation of nonmotorized vehicles.
(11)
Viewing or exploring a site for aesthetic or historical benefit or for
entertainment.
(12)
Operation of motorized vehicles if the operation is:
(i)
over an existing lane and incidental to an activity described in paragraphs (1)
through
(10);
or
(ii)
necessary to remove an animal which has been hunted under paragraph (1).
“Roll-back
tax.” The amount equal to the difference between the taxes paid or payable
on
the basis of the valuation and the assessment authorized hereunder and the
taxes that
would
have been paid or payable had that land been valued, assessed and taxed as
other
land
in the taxing district in the current tax year, the year of change, and in six
of the
previous
tax years or the number of years of preferential assessment up to seven.
“Separation.”
A division, by conveyance or other action of the owner, of lands devoted
to
agricultural use, agricultural reserve or forest reserve and preferentially
assessed under
the
provisions of this act, into two or more tracts of land, the use of which continues
to be
agricultural
use, agricultural reserve or forest reserve and all tracts so formed meet the
requirements
of section 3.
“Split-off.”
A division, by conveyance or other action of the owner, of lands devoted to
agricultural use, agricultural reserve or forest reserve and preferentially assessed under
the
provisions of this act into two or more tracts of land, the use of which on one
or more
of
such tracts does not meet the requirements of section 3.
“Tract.”
A lot, piece or parcel or land. The term does not refer to any precise
dimension
of
land.
“USDA-ERS.”
The United States Department of Agriculture-Economic Research
Service.
“USDA-NRCS.”
The United States Department of Agriculture-Natural Resources
Conservation
Service.
“Woodlot.”
An area of less than ten acres, stocked by trees of any size and contiguous
to
or
part of land in agricultural use or agricultural reserve.
§
5490.3. Land devoted to agricultural use, agricultural reserve, and/or forest
reserve
(a)
For general property tax purposes, the value of land which is presently devoted
to
agricultural
use, agricultural reserve, and/or forest reserve shall, on application of the
owner
and approval thereof as hereinafter provided, be that value which such land has
for
its
particular land use category if it also meets the following conditions:
(1)
Land presently devoted to agricultural use: Such land was devoted to
agricultural use
the
preceding three years and is not less than ten contiguous acres in area,
including the
farmstead
land, or has an anticipated yearly gross income of at least two thousand
dollars
($2,000).
(2)
Land presently devoted to agricultural reserve: Such land is not less than ten
contiguous
acres in area, including the farmstead land.
(3)
Land presently devoted to forest reserve: Such land is not less than ten
contiguous
acres
in area, including the farmstead land.
(a.1)
The following apply to enrollment:
(1) A
landowner may enroll one tract or more than one contiguous tract for
preferential
assessment
if the total area to be enrolled meets the minimum requirements for eligibility
otherwise
prescribed in this section. A landowner may not enroll less than the entire
contiguous
portion of land described in the deed applicable to a tract for which
enrollment for preferential assessment is sought.
(2) A
tract of land which is used for agricultural use, agricultural reserve or
forest reserve
purposes
may be enrolled for preferential assessment notwithstanding that the tract
itself
does
not meet the minimum requirements for eligibility otherwise prescribed in this
section
if the tract is contiguous to a tract or tracts which have been previously
enrolled
by
the landowner for preferential assessment.
(b),
(c) Deleted.
(d)
The county board of assessment appeals may not terminate preferential
assessment of
land
previously determined by the board to qualify for preferential assessment
without:
(1)
written notice under section 4(c.1) from the landowner expressing that preferential
assessment
is to be terminated; or
(2)
written notice under section 5(a)(2) from the county assessor to the landowner
that
preferential
assessment is to be terminated, stating the reason for such termination and the
opportunity
for a hearing under section 9.
(e) A
county assessor may not impose any requirements or conditions of eligibility
for
preferential
assessment other than those otherwise prescribed in this section.
(f) A
tract of land enrolled in either the agricultural use or forest reserve land
use
category
and otherwise eligible for preferential assessment under this section shall not
be
deemed
ineligible because the owner of the tract of land permits or authorizes or has
permitted
or authorized a recreational activity on the tract pursuant to section 8(f).
(g)
(1) The county commissioners may adopt an ordinance to include farmstead land
in
the
total use value for land in agricultural reserve. Any ordinance adopted
pursuant to this
subsection
shall be applied uniformly to all land in agricultural reserve in the county.
(2)
The county commissioners may adopt an ordinance to include farmstead land in
the
total
use value for land in forest reserve. Any ordinance adopted pursuant to this
subsection
shall be applied uniformly to all land in forest reserve in the county.
§
5490.4. Applications for preferential assessments
(a)
The county board for assessment appeals shall have the responsibility to accept
and
process
applications for preferential assessments as prescribed by this act.
(a.1)
A complete and accurate application for preferential assessment shall be
accepted
by a
county board for assessment appeals or a county assessor if the provisions of
section
3 are
met. All applications for preferential assessment shall be processed in every
county
in a
timely manner to become effective for the tax year of each taxing body which
commences
in the calendar year immediately following the application deadline.
(b)
Each owner of land qualifying under this act as agricultural use, agricultural
reserve
and/or forest reserve, desiring preferential use assessment shall make application to the
county
board of assessment appeals of the county in which the land is located. Except
as
provided
in subsection (b.1), such application must be submitted on or before June 1 of
the
year immediately preceding the tax year. Preferential assessment shall continue
under
the
initial application or an application amended under subsection (f) until land
use
change
takes place.
(b.1)
In a year when a reassessment is implemented, the application must be submitted
within
thirty days of the final order of the county board for assessment appeals or by
October
15 of the same year, whichever is sooner, regardless of whether or not judicial
review
of the order is sought.
(b.2)
A landowner may apply for preferential assessment for any eligible land in any
county,
regardless of the landowner's county of residence and whether or not the
residence
of the landowner is situated on the land submitted for application.
(b.3)
One application may include more than one land use category.
(c)
There shall be uniform application forms for preferential assessment in all
counties.
Such
application forms shall be developed by the department. In addition to the
information
which the department shall deem appropriate, the following statement shall
be
included:
“The
applicant for preferential assessment hereby agrees, if his application is
approved
for
preferential assessment, to submit thirty days'-notice to the county assessor
of a
proposed
change in use of the land, a change in ownership of a portion of the land or of
any
type of division or conveyance of the land. The applicant for preferential
assessment
hereby
acknowledges that, if his application is approved for preferential assessment,
roll-back
taxes
under section 5.1 of the act may be due for a change in use of the land, a
change
in ownership of any portion of the land, or any type of division or conveyance
of
the
land.”
(c.1)
A landowner receiving preferential assessment under this act shall submit 30
days'
notice
to the county assessor of a proposed change in use of the land, a change in
ownership
of any portion of the land, or any type of division or conveyance of the land.
(d)
The approved application for preferential assessment shall be recorded by the
county
board
for assessment appeals in the office of the recorder of deeds for the county in
a
preferential
assessment docket. A breach of the preferential assessment shall also be
recorded
by the county board for assessment appeals in the office of the recorder of
deeds.
The recorder shall charge a fee for the recordings in accordance with the acts
relating
to the imposition of fees by recorders of deeds. The recorder of deeds may not
impose
a fee unless an application for preferential assessment is approved by the
county
board
for assessment appeals. The fee for recording the breach of the preferential
assessment
shall be added onto the total of the roll-back taxes due and shall be paid by
the owner of the property.
(e)
The county board for assessment appeals may impose a fee for processing
applications
for preferential assessment of no more than fifty dollars ($50).
(f)
Amendments to initial application shall be as follows:
(1)
When a landowner receiving preferential assessment changes a deed as a result
of a
split-off,
separation, transfer or change of ownership, the county board for assessment
appeals
shall adjust the initial application to reflect the deed change. Such change
shall be
recorded
in accordance with subsection (d). Recording fees shall be paid by the
landowner
and the county assessor may not impose any additional fees for amending an
application.
(2)
Preferential assessment on land which continues to meet the provisions of
section 3
shall
not lapse and shall continue at the same rate previously established under
section
4.2.
§
5490.4a. Responsibilities of department
(a)
By June 30, 1999, and by May 1 of each year thereafter, the department shall
establish
and
provide to all county assessors county-specific use values for land in
agricultural use
and
agricultural reserve in accordance with this section.
(b)
When establishing county-specific use values for land in agricultural use and
agricultural
reserve, the department shall consult with the Department of Agricultural
Economics
and Rural Sociology of the College of Agricultural Sciences at The
Pennsylvania
State University, the Pennsylvania Agricultural Statistics Service, USDA-ERS,
USDA-NRCS
and other sources as the department deems appropriate and shall use
the
income approach for asset valuation.
(c)
By June 30, 1999, and by May 1 of each year thereafter and in consultation with
the
Bureau
of Forestry of the Department of Conservation and Natural Resources, the
department
shall establish and provide to all county assessors use values for land in
forest
reserve.
§
5490.4b. Responsibilities of county assessor in establishing use values
(a)
For each application for preferential assessment, the county assessor shall
establish a
total
use value for land in agricultural use, including farmstead land, and for land
in
agricultural
reserve by considering available evidence of the capability of the land for its
particular
use utilizing the USDA-NRCS Agricultural Land Capability Classification
system
and other information available from USDA- ERS, The Pennsylvania State
University
and the Pennsylvania Agricultural Statistics Service. Contributory value of
farm buildings shall be used.
(b)
For each application for preferential assessment, the county assessor shall
establish a
total
use value for land in forest reserve by considering available evidence of
capability
of
the land for its particular use. Contributory value of farm buildings shall be
used.
(c) A
county assessor may establish use values which are less than the values
provided by
the
department under section 4.1, but lesser values shall be applied uniformly to
all land
in
the county eligible for preferential assessment.
(d)
For purposes of this section:
(1)
Farmstead land located within an area enrolled as agricultural use shall be
assessed at
agricultural
use value.
(2)
Farmstead land located within an area enrolled as agricultural reserve or
forest reserve
shall
be assessed at agricultural use value if either:
(i) a
majority of land in the application for preferential assessment is enrolled as
agricultural
use land; or
(ii)
in the circumstance that noncontiguous tracts of land are enrolled under one
application,
a majority of land on the tract where the farmstead land is located is enrolled
as
agricultural use land.
§
5490.5. Responsibilities of the county assessor in general
(a)
In addition to keeping such records as are now or hereafter required by law, it
shall be
the
duty of the county assessor:
(1)
To indicate on property record cards, assessment rolls, and any other
appropriate
records,
the fair market value, the normal assessed value, the land use category and the
number
of acres enrolled in each land use category, the use value under section 4.2
and
the
preferentially assessed value of each parcel granted preferential use
assessments
under
this act; and annually, to record on such records all changes, if any, in the
fair
market
value, the normal assessed value, the land use category and the number of acres
enrolled
in each land use category, the use value under section 4.2 and the
preferentially
assessed
value of such properties.
(2)
To notify in writing the appropriate taxing bodies and landowner of any
preferential
assessments
granted or terminated for each parcel, including the land use category and
the
number of acres enrolled in each land use category, within their taxing
jurisdiction
and
of the reason for termination within five days of such change. There shall be a
right
of
appeal as provided by section 9.
(3)
To notify in writing the owner of a property that is preferentially assessed
under this
act,
and the taxing bodies of the district in which such property is situated, of
any changes
in the fair market value, the normal assessed value, the land use category and the number
of
acres enrolled in each land use category, the use value under section 4.2 or
the
preferentially
assessed value within five days of such change. There shall be a right of
appeal
as provided for in section 9.
(4)
To maintain a permanent record of the tax rates, in mills, levied by each of
the taxing
authorities
in the county for each tax year.
(5)
By January 31 of each year, to report to the department for the previous year
the
number
of acres enrolled in each land use category, the number of acres terminated in
each
land use category, the dollar amount received as roll-back taxes and the dollar
amount
received as interest on roll-back taxes.
(b)
It shall be the duty of the county assessor, as set forth under section 8(c),
to calculate
roll-back
taxes, give notice of the amounts due to landowners and interested parties and
to
file liens for unpaid roll-back taxes.
(c) The
preferential use assessments granted under this act shall be considered by the
State
Tax Equalization Board in determining the market value of taxable real property
for
school
subsidy purposes. The State Tax Equalization Board shall not reflect the
individual
school district market value decrease, as it relates to agricultural land, when
certifying
the Statewide market value to the Department of Education.
§
5490.5a. Penalty for ineligible use
If a
landowner changes the use of any tract of land subject to preferential
assessment
under
this act to one which is inconsistent with the provisions of section 3 or for
any
other
reason the land is removed from a land use category under section 3, except for
a
condemnation
of the land, the land so removed and the entire tract of which it was a part
shall
be subject to roll-back taxes plus interest on each year's roll-back tax at the
rate of
six
percent (6%) per annum. After the first seven years of preferential assessment,
the
roll-back
tax shall apply to the seven most recent tax years.
§
5490.5b. Civil penalties
(a)
The county board for assessment appeals may assess a civil penalty of not more
than
one
hundred dollars ($100) upon a person for each violation of this act or any
regulation
promulgated
under this act.
(b)
If a civil penalty is assessed against a person under subsection (a), the
county board
for
assessment appeals must notify the person by certified mail of the nature of
the
violation
and the amount of the civil penalty and that the person may notify the county
board
for assessment appeals in writing within ten calendar days that the person
wishes to
contest
the civil penalty. If, within ten calendar days from the receipt of that
notification,
the
person does not notify the county board for assessment appeals of intent to
contest the
assessed penalty, the civil penalty shall become final.
(c)
If timely notification of the intent to contest the civil penalty is given, the
person
contesting
the civil penalty shall be provided with a hearing in accordance with 2 Pa.C.S.
Ch. 5
Subch. B (relating to practice and procedure of local agencies) and Ch. 7
Subch. B
(relating
to judicial review of local agency action).
§
5490.6. Split-off, separation or transfer
(a.1)(1)
The split-off of a part of land which is subject to preferential assessment
under
this
act shall subject the land so split off and the entire tract from which the
land was split
off
to roll-back taxes as set forth in section 5.1. The landowner changing the use
of the
land
to one inconsistent with this act shall be liable for payment of roll-back
taxes. The
landowner
of land which continues to be eligible for preferential assessment shall not be
liable
for any roll-back taxes triggered as a result of a change to an ineligible use
by the
owner
of the split-off tract. Roll-back taxes under section 5.1 shall not be due if
one of
the
following provisions applies:
(i)
The tract split off does not exceed two acres annually, except that a maximum
of the
minimum
residential lot size requirement annually may be split off if the property is
situated
in a local government unit which requires a minimum residential lot size of two
to
three acres; the tract split off is used only for agricultural use, agricultural
reserve or
forest
reserve or for the construction of a residential dwelling to be occupied by the
person
to whom the land is conveyed; and the total tract or tracts so split off do not
exceed
the lesser of ten acres or ten percent (10%) of the entire tract subject to
preferential
assessment.
(ii)
The split-off occurs through a condemnation.
(2)
Each tract which has been split off under paragraph (1)(i) shall be subject to
roll-back
taxes
for such a period of time as provided in section 5.1. The landowner changing
the
use
of the land shall be liable for payment of roll-back taxes.
(3)
The split-off of a tract of land which meets the provisions of paragraph (1)
shall not
invalidate
the preferential assessment on any land retained by the landowner which
continues
to meet the provisions of section 3.
(4)
Payment of roll-back taxes by the liable landowner shall not invalidate the
preferential
assessment on any land which continues to meet the provisions of section 3.
(5)
Any person may bring an action in equity to enjoin use of the land inconsistent
with
the
use provided in this subsection.
(6)
Land which has been split off shall be deemed to be used for residential use,
agricultural
use, agricultural reserve or forest reserve unless it is demonstrated that the
owner
of the split-off parcel is actively using the tract in a manner which is
inconsistent
with residential use, agricultural use, agricultural reserve or forest reserve.
(a.2)
The owner of land subject to preferential assessment may separate land. If a
separation
occurs, all tracts formed by the separation shall continue to receive
preferential
assessment
unless, within seven years of the separation, there is a subsequent change of
use
to one inconsistent with the provisions of section 3. Such subsequent change in
use
shall
subject the entire tract so separated to roll-back taxes as set forth in
section 5.1. The
landowner
changing the use of the land to one inconsistent with the provisions of section
3
shall be liable for payment of roll-back taxes. After seven years from the date
of the
separation,
only that portion of land which has had its use changed to one which is
inconsistent
with the provisions of section 3 shall be subject to roll-back taxes as set
forth
in
section 5.1. Payment of roll-back taxes shall not invalidate the preferential
assessment
on
any land which continues to meet the provisions of section 3.
(a.3)
If ownership of land subject to a single application for preferential
assessment is
transferred
to another landowner, the land shall continue to receive preferential
assessment,
and no roll-back taxes shall be due unless there is a subsequent change of use
to
one inconsistent with the provisions of section 3. The landowner changing the
use of
the
land to one inconsistent with the provisions of section 3 shall be liable for
payment of
roll-back
taxes. Payment of roll-back taxes shall not invalidate the preferential
assessment
on any land which continues to meet the provisions of section 3.
(b.1)
The owner of property subject to preferential assessment may lease land covered
by
the
preferential assessment to be used for wireless or cellular telecommunication
when
the following
conditions are satisfied:
(1)
The tract of land so leased does not exceed one-half of an acre.
(2)
The tract of land does not have more than one communication tower.
(3)
The tract of land is accessible.
(4)
The tract of land is not sold or subdivided. A lease of land shall not be
considered a
subdivision
under this paragraph.
(b.2)
Use of land under this section for wireless services other than wireless
telecommunications
may only qualify if such wireless services share a tower with a
wireless
telecommunications provider as provided for in subsection (b.1). Roll-back
taxes
shall
be imposed upon the tract of land leased by the landowner for wireless or
cellular
telecommunications
purposes and the fair market value of that tract of land shall be
adjusted
accordingly. The lease of such a tract of land shall not invalidate the
preferential
assessment
of the land which is not so leased, and such land shall continue to be eligible
for
preferential assessment if it continues to meet the requirements of section 3.
(b.3)
The wireless or cellular communications provider shall be solely responsible
for
obtaining
required permits in connection with any construction on a tract of land which
it
leases pursuant to the provisions of this section for telecommunications purposes. No
permit
requested pursuant to this section shall be denied by a municipality for any
reason
other
than failure to strictly comply with permit application procedures.
(c)
Deleted.
(d)
Upon the death of a landowner receiving preferential assessment under this act,
if
land
subject to preferential assessment is divided among the beneficiaries
designated as
class
A for inheritance tax purposes and, as a result of such division, one or more
tracts
no
longer meet the provisions of section 3, no roll-back tax shall be due on any
of the
land
which previously qualified for preferential assessment. A subsequent change in
the
use
of one such beneficiary's portion of the divided land shall not subject any
other
beneficiary's
portion of the divided land to roll-back taxes. Roll-back taxes shall be due
only
in accordance with the provisions of section 5.1 on the tract held by the
beneficiary
who
changes the use of any portion of his or her inheritance.
(e)
Any change in use of land subject to preferential assessment shall be in
compliance
with
the zoning ordinances of the local municipality, if in effect.
§
5490.7. Contiguous land in more than one taxing district
Where
contiguous land in agricultural use, agricultural reserve, and/or forest
reserve in
one
ownership is located in more than one taxing district, compliance with the
minimum
area
requirement under section 3 shall be determined on the basis of the total area
of such
land
and not the area which is located in the particular taxing district.
§
5490.8. Roll-back taxes; special circumstances
(a)
Deleted.
(b)
Unpaid roll-back taxes shall be a lien upon the property collectible in the
manner
provided
by law for the collection of delinquent taxes. Roll-back taxes shall become due
on
the date of change of use, or any other termination of preferential assessment
and shall
be
paid by the owner of the land at the time of change in use, or any other
termination of
preferential
assessment, to the county treasurer or to the tax claim bureau, as the case
may
be, whose responsibility it shall be to make proper distribution of the taxes
to the
taxing
bodies wherein the property is located. Nothing in this section shall be
construed
to
require the taxing body of a taxing district in which land enrolled in
preferential use is
situated
to accept the roll-back taxes due and payable to that taxing district if the
use of
the
land is changed for the purpose of granting or donating such land to:
(1) a
school district;
(2) a
municipality;
(3) a county;
(4) a
volunteer fire company;
(5) a
volunteer ambulance service;
(6) a
not-for-profit corporation, tax exempt under section 501(c)(3) of the Internal
Revenue
Code of 1954 (68A Stat. 3, 26 U.S.C. § 501(c)(3)), provided that, prior to
accepting
ownership of the land, such corporation enters into an agreement with the
municipality
wherein the subject land is located guaranteeing that it will be used
exclusively
for recreational purposes, all of which shall be available to the general public
free
of charge. In the event the corporation changes the use of all or a portion of
the land
or
charges admission or any other fee for the use or enjoyment of the facilities,
the
corporation
shall immediately become liable for all roll-back taxes and accrued interest
previously
forgiven pursuant hereto; or
(7) a
religious organization for construction or regular use as a church, synagogue
or
other
place of worship, including meeting facilities, parking facilities, housing
facilities
and
other facilities which further the religious purposes of the organization.
(b.1)
Any accrued interest on roll-back taxes shall become due on the date of change
of
use
or any other termination of preferential assessment and shall be paid by the
landowner
liable for roll-back taxes, at the time of change in use or any other
termination
of
preferential assessment, to the county treasurer. The county treasurer shall
make
proper
distribution of the interest to the county commissioners and the county
comptroller,
as the case may be, who shall properly designate all of the interest for use by
the
county board of the eligible county under the act of June 30, 1981 (P.L. 128,
No. 43),
known
as the “Agricultural Area Security Law.” The interest shall be in addition to
other
local
money appropriated by an eligible county for the purchase of agricultural
conservation
easements under section 14.1(h) of the “Agricultural Area Security Law.” If
the
county where the interest is collected is not an eligible county under the
“Agricultural
Area
Security Law,” the county treasurer shall forward all of the interest to the
Agricultural
Conservation Easement Purchase Fund.
(b.2)
Interest on roll-back taxes distributed in accordance with subsection (b.1) to
the
county
commissioners and the county comptroller, as the case may be, for use by the
county
board of the eligible county under the “Agricultural Area Security Law” shall
be
segregated
into a special roll-back account, and, notwithstanding any other provisions of
the
“Agricultural Area Security Law,” the eligible county board in distributing
moneys
from
the special roll-back account shall, in its discretion, give priority to the
purchase of
agricultural
conservation easements from agricultural security areas located within the
municipal
corporation in which the land subject to the roll-back taxes is situate.
(c)
Within five working days after receipt of a notice from the owner of a
property, which
is
preferentially assessed, of a proposed change in the use of the land, to one
not meeting
the
requirements of section 3, or a split-off of a portion of the land, the county
assessor
shall:
(1)
Calculate by years the total of all roll-back taxes due at the time of change
and shall
notify
the property owner of such amounts. In the case of a conveyance of all or part
of
said
land, he shall notify the prospective buyer, if known, of such amounts.
(2)
With respect to the roll-back taxes for the current year, he shall notify the
taxing
bodies
of the district in which the property is located of the additional amount of
assessment
upon which taxes shall be levied and collected. In the case of county property
taxes,
he shall notify the tax collector of the appropriate district of additional
county tax
to be
collected.
(3)
With respect to roll-back taxes for years prior to the current year which the
assessor
has
determined to be due, he shall file a claim for such amounts with the tax claim
bureau
or
the county treasurer, as the case may be, which upon said filing shall
constitute a lien
having
the same force and effect as if filed by the taxing bodies.
(d)
(1) A landowner may apply a maximum of two acres of a tract of land subject to
preferential
assessment toward direct commercial sales of agriculturally related products
and
activities or for a rural enterprise incidental to the operational unit without
subjecting
the
entire tract to roll-back taxes, provided that:
(i)
The commercial activity is owned and operated by the landowner or his
beneficiaries
who
are designated as class A for inheritance tax purposes.
(ii)
An assessment of the inventory of the goods involved verifies that it is owned
by the
landowner
or his beneficiaries.
(iii)
The rural enterprise does not permanently render the land incapable of
producing an
agricultural
commodity.
(2)
Roll-back taxes shall be imposed upon that portion of the tract where the
commercial
activity
takes place and the fair market value of that tract shall be adjusted
accordingly.
(e)
(1) Notwithstanding the provisions of subsection (a), no roll-back taxes shall
be due
and
no breach of a preferential assessment shall be deemed to have occurred if:
(i)
the land transferred from a preferential assessment is conveyed to a nonprofit
corporation
for use as a cemetery and at least ten acres of land remain in the preferential
use
after removal; or
(iii)
the land transferred from a preferential assessment, or an easement or a
right-of-way
in
that land, is conveyed to a nonprofit corporation and:
(A)
the subject land does not exceed twenty feet in width;
(B) the subject land is used as a trail for nonmotorized passive recreational use;
(C)
the subject land is available to the public for use without charge; and
(D)
at least ten acres of land remain in preferential assessment after conveyance.
(2)
Any acquisition or subsequent resale or change in use of any of the removed
land for
use
other than as a cemetery under paragraph (1)(i) or as a trail under paragraph
(1)(iii)
shall
subject the nonprofit corporation to payment of roll-back taxes and interest
due on
the
entire tract of land removed.
(f)
No roll-back taxes shall be due and no breach of preferential assessment shall
be
deemed
to have occurred if the owner of a tract of land that is subject to
preferential
assessment
permits or authorizes or has permitted or authorized to be performed on the
tract
or any portion of the tract any recreational activity regardless of whether or
not the
landowner
imposes a fee or charge to perform the recreational activity provided that:
(1)
the tract of land in question is enrolled in either the agricultural use or
forest reserve
land
use categories; and
(2)
the recreational activity performed does not render the land incapable of being
immediately
converted to agricultural use on agricultural use land and does not
permanently
render the land incapable of producing timber or other wood products on
forest
reserve land.
§
5490.9. Appeals
(a)
The owner of a property which is subject to preferential assessment or for
which
preferential
assessment is sought, and the political subdivision in which said property is
situated,
shall have the right of appeal in accordance with existing law.
(b)
When roll-back taxes for prior years are to be collected as provided above, no
person
and
no political subdivision shall be permitted to question any assessment of any
prior
year
before the Board of Assessment Appeals unless a timely appeal was filed
pursuant to
the
requirements of the acts of Assembly relating to assessment appeals during the
time
period
for which appeals for that year would normally be taken.
§
5490.10. Renegotiation of open space agreements
Any
county which has covenanted with landowners of farm or forest land as to
assessments
and open space use of such land under the act of January 13, 1966 (1965
P.L.
1292, No. 515), entitled “An act enabling certain counties of the Commonwealth
to
covenant
with land owners for preservation of land in farm, forest, water supply, or
open
space
uses,” may, at the landowner's option, renegotiate such agreements so as to
make
them conform to the provisions of this act as to preferential assessments.
§
5490.11. Rules and regulations
The
department shall promulgate rules and regulations necessary to promote the efficient,
uniform,
Statewide administration of the act.
§
5490.12. Applicability
This
act shall apply to all counties of the Commonwealth of Pennsylvania.
§
5490.13. Severability; inconsistent laws
If
any section, provision, or clause of this act shall be declared invalid or
inapplicable to
any
persons or circumstances, such action shall not be construed to affect the rest
of the
act
or circumstances not so affected. All laws or portions of laws inconsistent
with the
policy and provisions of this act are hereby repealed to that extent.