THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HOUGHTON, HANNA, GEORGE, GERGELY, CALTAGIRONE, CARROLL, DALEY, GODSHALL, KESSLER, KORTZ, MILLARD, SIPTROTH, SOLOBAY, WHITE AND ROAE, APRIL 30, 2009

REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS, APRIL 30, 2009  

AN ACT

Amending the act of December 19, 1974 (P.L.973, No.319),

entitled "An act prescribing the procedure under which an

owner may have land devoted to agricultural use, agricultural

reserve use, or forest reserve use, valued for tax purposes

at the value it has for such uses, and providing for

reassessment and certain interest payments when such land is

applied to other uses and making editorial changes," further

providing for split-off, separation or transfer of land.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 6 of the act of December 19, 1974

(P.L.973, No.319), known as the Pennsylvania Farmland and Forest

Land Assessment Act of 1974, amended December 21, 1998

(P.L.1225, No.156), is amended to read:

Section 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.

(b.4)  Property subject to preferential assessment may be

leased or otherwise devoted to the exploration for and removal

of oil and gas, including the extraction of coal bed methane,

and the development of appurtenant facilities related to those

activities.

(b.5)  Roll-back taxes shall be imposed upon those portions

of the land actually devoted to the activities set forth in

subsection (b.4) after the effective date of this subsection,

excluding land devoted solely to subsurface transmission or

gathering lines which shall not be subject to rollback. The

portions of the land subject to rollback shall be measured upon

completion of drilling and after well site restoration and at

the filing of a well site restoration report with the Department

of Environmental Protection. The fair market value of only those

portions of the land shall be adjusted accordingly. Roll-back

taxes on those portions of the land shall not invalidate the

preferential assessment of any other land covered by the

preferential assessment and such land shall continue to be

eligible for preferential assessment if it continues to meet the

requirements of section 3. Notwithstanding the foregoing,

nothing contained herein shall impose roll-back taxes upon a

landowner for activities related to the exploration for and

removal of oil and gas, including the extraction of coal bed

methane, conducted exclusively by parties other than the

landowner who hold rights to conduct such activities pursuant to

an instrument, conveyance or other vesting of such rights, but

not by virtue of a lease agreement, occurring before the land

received a preferential assessment under this act and occurring

before the effective date of this section.

(b.6)  The owner of property subject to preferential

assessment may lease or devote land covered by the preferential

assessment to be used for a wind power generation system.

(b.7)  Roll-back taxes shall be imposed upon those portions

of the land leased or devoted by the landowner for wind power

generation system purposes and the fair market value of those

portions of the land shall be adjusted accordingly. Roll-back

taxes on those portions of the land shall not invalidate the

preferential assessment of any other land covered by the

preferential assessment and such land shall continue to be

eligible for preferential assessment if it continues to meet the

requirements of section 3.

(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.

Section 2.  This act shall take effect immediately.