THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HOUGHTON, HANNA, GEORGE, GERGELY, CALTAGIRONE, CARROLL, DALEY, GODSHALL, KESSLER, KORTZ, MILLARD, SIPTROTH, SOLOBAY, WHITE, ROAE, BRADFORD, McILVAINE SMITH, YOUNGBLOOD, GIBBONS, MATZIE AND MENSCH, APRIL 30, 2009

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 17, 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 definitions, for responsibilities of the county

assessor in general, for split-off, separation or transfer of

land and for roll-back taxes and special circumstances; and

providing for removal of land from preferential assessment.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definitions of "agricultural reserve,"

"agricultural use" and "forest reserve" in section 2 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) and December 8,

2004 (P.L. 1785, No.235), are amended and the section is amended

by adding definitions to read:

Section 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 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. The term includes any land

devoted to the development and operation of an alternative

energy system, if a majority of the energy annually generated is

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utilized on the tract in the production of an agricultural

commodity or in activities performed on the farmstead land.

"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:

(1)  any farmstead land on the tract[. The term includes];

(2)  a woodlot [and];

(3)  any land which is rented to another person and used for

the purpose of producing an agricultural commodity; and

(4)  any land devoted to the development and operation of an

alternative energy system, if a majority of the energy annually 

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generated is utilized on the tract in the production of an

agricultural commodity or in activities performed on the

farmstead land.

* * *

"Alternative energy."  Electricity, heat or other usable form

of energy generated from a Tier I energy source.

"Alternative energy system."  A facility or energy system

that utilizes a Tier I energy source to generate alternative

energy. The term includes a facility or system that generates

alternative energy for utilization onsite or for delivery of the

energy generated to an energy distribution company or to an

energy transmission system operated by a regional transmission

organization.

* * *

"Forest reserve."  Land, ten acres or more, stocked by forest

trees of any size and capable of producing timber or other wood

products. The term includes any land devoted to the development

and operation of an alternative energy system, if a majority of

the energy annually generated is utilized on the tract in the

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production of an agricultural commodity or in activities

performed on the farmstead land.

* * *

"Tier I energy source."  A Tier I alternative energy source,

as defined in section 2 of the act of November 30, 2004

(P.L.1672, No.213), known as the "Alternative Energy Portfolio

Standards Act."

* * *

Section 2.  Section 5 of the act is amended by adding a

subsection to read:

Section 5.  Responsibilities of the County Assessor in

General.--* * *

(b.1)  Portions of land devoted to the development and

operation of an alternative energy system meeting the definition

of agricultural use, agricultural reserve or forest reserve

shall retain the same land use category for preferential

assessment as was approved for the land before the devotion took

place.

Section 3.  Sections 6 and 8(b) of the act, amended December

21, 1998 (P.L.1225, No.156), are amended to read:

Section 6.  Split-off, Separation or Transfer; Other Use.--

(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.1)  (1)  Land 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, including, but

not limited to, new roads and bridges, pipelines and other

buildings or structures related to those activities.

(2)  Portions of land subject to preferential assessment may

be used for exploration for or removal of oil and gas, including

the extraction of coal bed methane, and the development of

appurtenant facilities, including, but not limited to, new roads

and bridges, pipelines and other buildings or structures related

to those activities.

(c.2)  Roll-back taxes shall be imposed upon those portions

of the land actually devoted to the activities set forth in

subsection (c.1)(2), excluding land devoted solely to subsurface

transmission or gathering lines which shall not be subject to

roll-back tax. The portion of land subject to roll-back tax

shall be the restored well site and any portion of land that

does not meet the requirements of section 3, as measured upon

the filing of a well site restoration report with the Department

of Environmental Protection as required by 25 Pa. Code 78.65

(relating to site restoration) or its subsequent version. Within

ten days of its receipt approval, a copy of this report shall be

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furnished by the Department of Environmental Protection to the

county board for assessment appeals. The fair market value of

the restored well site and any land that does not meet the

requirements of section 3 shall be adjusted to begin on the date

of approval of a permit issued in accordance with the provisions

of the act of December 19, 1984 (P.L.1140, No.223), known as the

"Oil and Gas Act," and payable upon the filing of a well site

restoration report. The use of a portion of land under

subsection (c.1)(2) shall not invalidate the preferential

assessment of the land which is not so used, and the land shall

continue to receive preferential assessment if it continues to

meet the requirements of section 3.

(c.3)  Notwithstanding subsection (c.2), no roll-back taxes

shall be imposed 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

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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. A county that has previously assessed roll-back

taxes and adjusted fair market value on lands covered by

preferential assessment prior to the enactment of this

subsection shall comply with this subsection beginning on the

effective date of this subsection, and shall not be required to

implement the provisions of this subsection retroactively.

Counties that have not assessed roll-back taxes and adjusted

fair market value for tracts of land utilized for oil and gas

drilling and appurtenant facilities prior to enactment of this

subsection may not implement the provisions of this subsection

retroactively.

occurring after the effective date of this section if all of the 

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following conditions are met:

(1)  The activities are conducted exclusively by parties

other than the landowner.

(2)  The activities are conducted pursuant to an instrument,

conveyance or other vesting of such rights occurring before the

land received a preferential assessment under this act and

before the effective date of this subsection.

(3)  The activities are not conducted pursuant to a lease.

(c.4)  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.

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

of the land actually 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. The wind

power generation system shall include the foundation of the wind

turbine and the area of the surface covered by appurtenant

structures, including, but not limited to, new roads and

bridges, transmission lines, substations and other buildings or

structures related to the wind power generation system. 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.

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

assessment may lease or devote land covered by the preferential

assessment to be used for small noncoal surface mining, as

provided for under the act of December 19, 1984 (P.L.1093,

No.219), known as the Noncoal Surface Mining Conservation and

Reclamation Act. At any one time, a landowner may only have one

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active small noncoal surface mining permit as required under 25

Pa. Code § 77.108 (relating to permit for small noncoal

operations) per application for preferential assessment.

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

of land leased or devoted by the landowner for small noncoal

surface mining, 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 the land which is not so leased or devoted, and

the 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 8.  Roll-Back Taxes; Special Circumstances.--

(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 when a well site restoration report is

filed under section 6(c.2), 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.

* * *

Section 4.  The act is amended by adding a section to read:

Section 8.1.  Removal of Land From Preferential Assessment.--

(a)  A landowner receiving preferential assessment under this

act may remove land from preferential assessment if:

(1)  the landowner notifies in writing the county assessor by

June 1 of the year immediately preceding the tax year for which

the removal is requested;

(2)  the entire tract or tracts enrolled on a single

application for preferential assessment is removed from

preferential assessment; and

(3)  the landowner pays rollback taxes on the entire tract or

tracts as provided for in section 5.1.

(b)  Land removed from preferential assessment under this

section shall not be eligible to be subsequently reenrolled in

preferential assessment by the same landowner.

Section 5.  This act shall take effect as follows:

(1)  The addition of section 8.1 of the act shall take

effect in 60 days.

(2)  The remainder of this act shall take effect

immediately.