The Farmland and Forest Land Assessment Act of 1974

(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.