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| PRIOR PRINTER'S NO. 1715 | PRINTER'S NO. 2055 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY HOUGHTON, HANNA, GEORGE, GERGELY, CALTAGIRONE, CARROLL, DALEY, GODSHALL, KESSLER, KORTZ, MILLARD, SIPTROTH, SOLOBAY, WHITE, ROAE, BRADFORD, McILVAINE SMITH, YOUNGBLOOD, GIBBONS AND MATZIE, APRIL 30, 2009 |
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| AS REPORTED FROM COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 9, 2009 |
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| AN ACT |
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1 | Amending the act of December 19, 1974 (P.L.973, No.319), |
2 | entitled "An act prescribing the procedure under which an |
3 | owner may have land devoted to agricultural use, agricultural |
4 | reserve use, or forest reserve use, valued for tax purposes |
5 | at the value it has for such uses, and providing for |
6 | reassessment and certain interest payments when such land is |
7 | applied to other uses and making editorial changes," further |
8 | providing for definitions, for responsibilities of the county | <-- |
9 | assessor in general, for split-off, separation or transfer of |
10 | land and for roll-back taxes and special circumstances; and | <-- |
11 | providing for removal of land from preferential assessment. |
12 | The General Assembly of the Commonwealth of Pennsylvania |
13 | hereby enacts as follows: |
14 | Section 1. Section 6 of the act of December 19, 1974 | <-- |
15 | (P.L.973, No.319), known as the Pennsylvania Farmland and Forest |
16 | Land Assessment Act of 1974, amended December 21, 1998 |
17 | (P.L.1225, No.156), is amended to read: |
18 | Section 1. The definitions of "agricultural reserve," | <-- |
19 | "agricultural use" and "forest reserve" in section 2 of the act |
20 | of December 19, 1974 (P.L.973, No.319), known as the |
21 | Pennsylvania Farmland and Forest Land Assessment Act of 1974, |
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1 | amended December 21, 1998 (P.L.1225, No.156) and December 8, |
2 | 2004 (P.L. 1785, No.235), are amended and the section is amended |
3 | by adding definitions to read: |
4 | Section 2. Definitions.--As used in this act, the following |
5 | words and phrases shall have the meanings ascribed to them in |
6 | this section unless the context obviously otherwise requires: |
7 | * * * |
8 | "Agricultural reserve." Noncommercial open space lands used |
9 | for outdoor recreation or the enjoyment of scenic or natural |
10 | beauty and open to the public for such use, without charge or |
11 | fee, on a nondiscriminatory basis. The term includes any land |
12 | devoted to the development and operation of an alternative |
13 | energy system, if a majority of the energy generated is utilized |
14 | on the tract in the production of an agricultural commodity or |
15 | in activities performed on the farmstead land. |
16 | "Agricultural use." Land which is used for the purpose of |
17 | producing an agricultural commodity or is devoted to and meets |
18 | the requirements and qualifications for payments or other |
19 | compensation pursuant to a soil conservation program under an |
20 | agreement with an agency of the Federal Government. The term |
21 | includes: |
22 | (1) any farmstead land on the tract[. The term includes]; |
23 | (2) a woodlot [and]; |
24 | (3) any land which is rented to another person and used for |
25 | the purpose of producing an agricultural commodity; and |
26 | (4) any land devoted to the development and operation of an |
27 | alternative energy system, if a majority of the energy generated |
28 | is utilized on the tract in the production of an agricultural |
29 | commodity or in activities performed on the farmstead land. |
30 | * * * |
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1 | "Alternative energy." Electricity, heat or other usable form |
2 | of energy generated from a Tier I energy source. |
3 | "Alternative energy system." A facility or energy system |
4 | that utilizes a Tier I energy source to generate alternative |
5 | energy. The term includes a facility or system that generates |
6 | alternative energy for utilization onsite or for delivery of the |
7 | energy generated to an energy distribution company or to an |
8 | energy transmission system operated by a regional transmission |
9 | organization. |
10 | * * * |
11 | "Forest reserve." Land, ten acres or more, stocked by forest |
12 | trees of any size and capable of producing timber or other wood |
13 | products. The term includes any land devoted to the development |
14 | and operation of an alternative energy system, if a majority of |
15 | the energy generated is utilized on the tract in the production |
16 | of an agricultural commodity or in activities performed on the |
17 | farmstead land. |
18 | * * * |
19 | "Tier I energy source." A Tier I alternative energy source, |
20 | as defined in section 2 of the act of November 30, 2004 |
21 | (P.L.1672, No.213), known as the "Alternative Energy Portfolio |
22 | Standards Act." |
23 | * * * |
24 | Section 2. Section 5 of the act is amended by adding a |
25 | subsection to read: |
26 | Section 5. Responsibilities of the County Assessor in |
27 | General.--* * * |
28 | (b.1) Portions of land devoted to the development and |
29 | operation of an alternative energy system meeting the definition |
30 | of agricultural use, agricultural reserve or forest reserve |
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1 | shall retain the same land use category for preferential |
2 | assessment as was approved for the land before the devotion took |
3 | place. |
4 | Section 3. Sections 6 and 8(b) of the act, amended December |
5 | 21, 1998 (P.L.1225, No.156), are amended to read: |
6 | Section 6. Split-off, Separation or Transfer; Other Use.-- | <-- |
7 | (a.1) (1) The split-off of a part of land which is subject to |
8 | preferential assessment under this act shall subject the land so |
9 | split off and the entire tract from which the land was split off |
10 | to roll-back taxes as set forth in section 5.1. The landowner |
11 | changing the use of the land to one inconsistent with this act |
12 | shall be liable for payment of roll-back taxes. The landowner of |
13 | land which continues to be eligible for preferential assessment |
14 | shall not be liable for any roll-back taxes triggered as a |
15 | result of a change to an ineligible use by the owner of the |
16 | split-off tract. Roll-back taxes under section 5.1 shall not be |
17 | due if one of the following provisions applies: |
18 | (i) The tract split off does not exceed two acres annually, |
19 | except that a maximum of the minimum residential lot size |
20 | requirement annually may be split off if the property is |
21 | situated in a local government unit which requires a minimum |
22 | residential lot size of two to three acres; the tract split off |
23 | is used only for agricultural use, agricultural reserve or |
24 | forest reserve or for the construction of a residential dwelling |
25 | to be occupied by the person to whom the land is conveyed; and |
26 | the total tract or tracts so split off do not exceed the lesser |
27 | of ten acres or ten percent (10%) of the entire tract subject to |
28 | preferential assessment. |
29 | (ii) The split-off occurs through a condemnation. |
30 | (2) Each tract which has been split off under paragraph (1) |
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1 | (i) shall be subject to roll-back taxes for such a period of |
2 | time as provided in section 5.1. The landowner changing the use |
3 | of the land shall be liable for payment of roll-back taxes. |
4 | (3) The split-off of a tract of land which meets the |
5 | provisions of paragraph (1) shall not invalidate the |
6 | preferential assessment on any land retained by the landowner |
7 | which continues to meet the provisions of section 3. |
8 | (4) Payment of roll-back taxes by the liable landowner shall |
9 | not invalidate the preferential assessment on any land which |
10 | continues to meet the provisions of section 3. |
11 | (5) Any person may bring an action in equity to enjoin use |
12 | of the land inconsistent with the use provided in this |
13 | subsection. |
14 | (6) Land which has been split off shall be deemed to be used |
15 | for residential use, agricultural use, agricultural reserve or |
16 | forest reserve unless it is demonstrated that the owner of the |
17 | split-off parcel is actively using the tract in a manner which |
18 | is inconsistent with residential use, agricultural use, |
19 | agricultural reserve or forest reserve. |
20 | (a.2) The owner of land subject to preferential assessment |
21 | may separate land. If a separation occurs, all tracts formed by |
22 | the separation shall continue to receive preferential assessment |
23 | unless, within seven years of the separation, there is a |
24 | subsequent change of use to one inconsistent with the provisions |
25 | of section 3. Such subsequent change in use shall subject the |
26 | entire tract so separated to roll-back taxes as set forth in |
27 | section 5.1. The landowner changing the use of the land to one |
28 | inconsistent with the provisions of section 3 shall be liable |
29 | for payment of roll-back taxes. After seven years from the date |
30 | of the separation, only that portion of land which has had its |
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1 | use changed to one which is inconsistent with the provisions of |
2 | section 3 shall be subject to roll-back taxes as set forth in |
3 | section 5.1. Payment of roll-back taxes shall not invalidate the |
4 | preferential assessment on any land which continues to meet the |
5 | provisions of section 3. |
6 | (a.3) If ownership of land subject to a single application |
7 | for preferential assessment is transferred to another landowner, |
8 | the land shall continue to receive preferential assessment, and |
9 | no roll-back taxes shall be due unless there is a subsequent |
10 | change of use to one inconsistent with the provisions of section |
11 | 3. The landowner changing the use of the land to one |
12 | inconsistent with the provisions of section 3 shall be liable |
13 | for payment of roll-back taxes. Payment of roll-back taxes shall |
14 | not invalidate the preferential assessment on any land which |
15 | continues to meet the provisions of section 3. |
16 | (b.1) The owner of property subject to preferential |
17 | assessment may lease land covered by the preferential assessment |
18 | to be used for wireless or cellular telecommunication when the |
19 | following conditions are satisfied: |
20 | (1) The tract of land so leased does not exceed one-half of |
21 | an acre. |
22 | (2) The tract of land does not have more than one |
23 | communication tower. |
24 | (3) The tract of land is accessible. |
25 | (4) The tract of land is not sold or subdivided. A lease of |
26 | land shall not be considered a subdivision under this paragraph. |
27 | (b.2) Use of land under this section for wireless services |
28 | other than wireless telecommunications may only qualify if such |
29 | wireless services share a tower with a wireless |
30 | telecommunications provider as provided for in subsection (b.1). |
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1 | Roll-back taxes shall be imposed upon the tract of land leased |
2 | by the landowner for wireless or cellular telecommunications |
3 | purposes and the fair market value of that tract of land shall |
4 | be adjusted accordingly. The lease of such a tract of land shall |
5 | not invalidate the preferential assessment of the land which is |
6 | not so leased, and such land shall continue to be eligible for |
7 | preferential assessment if it continues to meet the requirements |
8 | of section 3. |
9 | (b.3) The wireless or cellular communications provider shall |
10 | be solely responsible for obtaining required permits in |
11 | connection with any construction on a tract of land which it |
12 | leases pursuant to the provisions of this section for |
13 | telecommunications purposes. No permit requested pursuant to |
14 | this section shall be denied by a municipality for any reason |
15 | other than failure to strictly comply with permit application |
16 | procedures. |
17 | (b.4) Property (c.1) (1) Land subject to preferential | <-- |
18 | assessment may be leased or otherwise devoted to the exploration |
19 | for and removal of oil and gas, including the extraction of coal |
20 | bed methane, and the development of appurtenant facilities, | <-- |
21 | including, but not limited to, new roads and bridges, pipelines |
22 | and other buildings or structures related to those activities. |
23 | (2) Portions of land subject to preferential assessment may | <-- |
24 | be used for exploration for or removal of oil and gas, including |
25 | the extraction of coal bed methane, and the development of |
26 | appurtenant facilities, including, but not limited to, new roads |
27 | and bridges, pipelines and other buildings or structures related |
28 | to those activities. |
29 | (b.5) (c.2) Roll-back taxes shall be imposed upon those | <-- |
30 | portions of the land actually devoted to the activities set |
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1 | forth in subsection (b.4) after the effective date of this | <-- |
2 | subsection (c.1)(2), excluding land devoted solely to subsurface | <-- |
3 | transmission or gathering lines which shall not be subject to |
4 | rollback roll-back tax. The portions of the land subject to | <-- |
5 | rollback shall be measured upon completion of drilling and after |
6 | well site restoration and at the filing of a well site |
7 | restoration report with the Department of Environmental |
8 | Protection. The fair market value of only those portions of the |
9 | land shall be adjusted accordingly. Roll-back taxes on those |
10 | portions of the land shall not invalidate the preferential |
11 | assessment of any other land covered by the preferential |
12 | assessment and such land shall continue to be eligible for |
13 | preferential assessment if it continues to meet the requirements |
14 | of section 3. Notwithstanding the foregoing, nothing contained |
15 | herein shall impose roll-back taxes upon a portion of land | <-- |
16 | subject to roll-back tax shall be the restored well site and any |
17 | portion of land that does not meet the requirements of section |
18 | 3, as measured upon the filing of a well site restoration report |
19 | with the Department of Environmental Protection as required by |
20 | 25 Pa. Code 78.65 (relating to site restoration) or its |
21 | subsequent version. Within ten days of its receipt, a copy of |
22 | this report shall be furnished by the Department of |
23 | Environmental Protection to the county board for assessment |
24 | appeals. The fair market value of the restored well site and any |
25 | land that does not meet the requirements of section 3 shall be |
26 | adjusted to begin on the date of approval of a permit issued in |
27 | accordance with the provisions of the act of December 19, 1984 |
28 | (P.L.1140, No.223), known as the "Oil and Gas Act," and payable |
29 | upon the filing of a well site restoration report. The use of a |
30 | portion of land under subsection (c.1)(2) shall not invalidate |
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1 | the preferential assessment of the land which is not so used, |
2 | and the land shall continue to receive preferential assessment |
3 | if it continues to meet the requirements of section 3. |
4 | (c.3) Notwithstanding subsection (c.2), no roll-back taxes |
5 | shall be imposed upon a landowner for activities related to the |
6 | exploration for and removal of oil and gas, including the |
7 | extraction of coal bed methane, conducted exclusively by parties |
8 | other than the landowner who hold rights to conduct such |
9 | activities pursuant to an instrument, conveyance or other |
10 | vesting of such rights, but not by virtue of a lease agreement, |
11 | occurring before the land received a preferential assessment |
12 | under this act and occurring before the effective date of this | <-- |
13 | section. act. A county that has previously assessed roll-back | <-- |
14 | taxes and adjusted fair market value on lands covered by |
15 | preferential assessment prior to the enactment of this |
16 | subsection shall comply with this subsection beginning on the |
17 | effective date of this subsection, and shall not be required to |
18 | implement the provisions of this subsection retroactively. |
19 | Counties that have not assessed roll-back taxes and adjusted |
20 | fair market value for tracts of land utilized for oil and gas |
21 | drilling and appurtenant facilities prior to enactment of this |
22 | subsection may not implement the provisions of this subsection |
23 | retroactively. |
24 | (b.6) (c.4) The owner of property subject to preferential | <-- |
25 | assessment may lease or devote land covered by the preferential |
26 | assessment to be used for a wind power generation system. |
27 | (b.7) (c.5) Roll-back taxes shall be imposed upon those | <-- |
28 | portions of the land leased or actually devoted by the landowner | <-- |
29 | for wind power generation system purposes and the fair market |
30 | value of those portions of the land shall be adjusted |
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1 | accordingly. The wind power generation system shall include the | <-- |
2 | foundation of the wind turbine and the area of the surface |
3 | covered by appurtenant structures, including, but not limited |
4 | to, new roads and bridges, transmission lines, substations and |
5 | other buildings or structures related to the wind power |
6 | generation system. Roll-back taxes on those portions of the land |
7 | shall not invalidate the preferential assessment of any other |
8 | land covered by the preferential assessment and such land shall |
9 | continue to be eligible for preferential assessment if it |
10 | continues to meet the requirements of section 3. |
11 | (C.6) The owner of property subject to preferential | <-- |
12 | assessment may lease or devote land covered by the preferential |
13 | assessment to be used for small noncoal surface mining, as |
14 | provided for under the act of December 19, 1984 (P.L.1093, |
15 | No.219), known as the Noncoal Surface Mining Conservation and |
16 | Reclamation Act. |
17 | (C.7) Roll-back taxes shall be imposed upon those portions |
18 | of land leased or devoted by the landowner for small noncoal |
19 | surface mining, and the fair market value of those portions of |
20 | the land shall be adjusted accordingly. Roll-back taxes on those |
21 | portions of the land shall not invalidate the preferential |
22 | assessment of the land which is not so leased or devoted, and |
23 | the land shall continue to be eligible for preferential |
24 | assessment if it continues to meet the requirements of section |
25 | 3. |
26 | (d) Upon the death of a landowner receiving preferential |
27 | assessment under this act, if land subject to preferential |
28 | assessment is divided among the beneficiaries designated as |
29 | class A for inheritance tax purposes and, as a result of such |
30 | division, one or more tracts no longer meet the provisions of |
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1 | section 3, no roll-back tax shall be due on any of the land |
2 | which previously qualified for preferential assessment. A |
3 | subsequent change in the use of one such beneficiary's portion |
4 | of the divided land shall not subject any other beneficiary's |
5 | portion of the divided land to roll-back taxes. Roll-back taxes |
6 | shall be due only in accordance with the provisions of section |
7 | 5.1 on the tract held by the beneficiary who changes the use of |
8 | any portion of his or her inheritance. |
9 | (e) Any change in use of land subject to preferential |
10 | assessment shall be in compliance with the zoning ordinances of |
11 | the local municipality, if in effect. |
12 | Section 8. Roll-Back Taxes; Special Circumstances.-- | <-- |
13 | (b) Unpaid roll-back taxes shall be a lien upon the property |
14 | collectible in the manner provided by law for the collection of |
15 | delinquent taxes. Roll-back taxes shall become due on the date |
16 | of change of use, or when a well site restoration report is |
17 | filed under section 6(c.2), or any other termination of |
18 | preferential assessment and shall be paid by the owner of the |
19 | land at the time of change in use, or any other termination of |
20 | preferential assessment, to the county treasurer or to the tax |
21 | claim bureau, as the case may be, whose responsibility it shall |
22 | be to make proper distribution of the taxes to the taxing bodies |
23 | wherein the property is located. Nothing in this section shall |
24 | be construed to require the taxing body of a taxing district in |
25 | which land enrolled in preferential use is situated to accept |
26 | the roll-back taxes due and payable to that taxing district if |
27 | the use of the land is changed for the purpose of granting or |
28 | donating such land to: |
29 | (1) a school district; |
30 | (2) a municipality; |
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1 | (3) a county; |
2 | (4) a volunteer fire company; |
3 | (5) a volunteer ambulance service; |
4 | (6) a not-for-profit corporation, tax exempt under section |
5 | 501(c)(3) of the Internal Revenue Code of 1954 (68A Stat. 3, 26 |
6 | U.S.C. § 501(c)(3)), provided that, prior to accepting ownership |
7 | of the land, such corporation enters into an agreement with the |
8 | municipality wherein the subject land is located guaranteeing |
9 | that it will be used exclusively for recreational purposes, all |
10 | of which shall be available to the general public free of |
11 | charge. In the event the corporation changes the use of all or a |
12 | portion of the land or charges admission or any other fee for |
13 | the use or enjoyment of the facilities, the corporation shall |
14 | immediately become liable for all roll-back taxes and accrued |
15 | interest previously forgiven pursuant hereto; or |
16 | (7) a religious organization for construction or regular use |
17 | as a church, synagogue or other place of worship, including |
18 | meeting facilities, parking facilities, housing facilities and |
19 | other facilities which further the religious purposes of the |
20 | organization. |
21 | * * * |
22 | Section 4. The act is amended by adding a section to read: | <-- |
23 | Section 8.1. Removal of Land From Preferential Assessment.-- |
24 | (a) A landowner receiving preferential assessment under this |
25 | act may remove land from preferential assessment if: |
26 | (1) the landowner notifies in writing the county assessor by |
27 | June 1 of the year immediately preceding the tax year for which |
28 | the removal is requested; |
29 | (2) the entire tract or tracts enrolled on a single |
30 | application for preferential assessment is removed from |
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1 | preferential assessment; and |
2 | (3) the landowner pays rollback taxes on the entire tract or |
3 | tracts as provided for in section 5.1. |
4 | (b) Land removed from preferential assessment under this |
5 | section shall not be eligible to be subsequently reenrolled in |
6 | preferential assessment by the same landowner. |
7 | Section 2 5. This act shall take effect immediately. as | <-- |
8 | follows: |
9 | (1) The addition of section 8.1 of the act shall take |
10 | effect in 60 days. |
11 | (2) The remainder of this act shall take effect |
12 | immediately. |
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