PRIOR PRINTER'S NOS. 593, 1142

PRINTER'S NO.  1624

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

298

Session of

2009

  

  

INTRODUCED BY YAW, BAKER, WAUGH, KITCHEN, SCARNATI, M. WHITE, ORIE, D. WHITE, WONDERLING, RAFFERTY, GORDNER, BROWNE, FOLMER, ALLOWAY AND VANCE, MARCH 5, 2009

  

  

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, JANUARY 26, 2010   

  

  

  

AN ACT

  

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 general responsibilities of

<--

9

county assessors, for split-off, separation or transfer and

10

for roll-back taxes and special circumstances; and providing

<--

11

for removal of land from preferential assessment.

12

The General Assembly of the Commonwealth of Pennsylvania

13

hereby enacts as follows:

14

Section 1.  The definition of "agricultural use" definitions

<--

15

of "agricultural reserve," "agricultural use" and "forest

16

reserve" in section 2 of the act of December 19, 1974 (P.L.973,

17

No.319), known as the Pennsylvania Farmland and Forest Land

18

Assessment Act of 1974, amended December 21, 1998 (P.L.1225,

19

No.156), is and December 8, 2004 (P.L.1785, No.235), are amended

<--

20

and the section is amended by adding definitions to read:

21

Section 2.  Definitions.--As used in this act, the following

 


1

words and phrases shall have the meanings ascribed to them in

2

this section unless the context obviously otherwise requires:

3

* * *

4

"Agricultural reserve."  Noncommercial open space lands used

<--

5

for outdoor recreation or the enjoyment of scenic or natural

6

beauty and open to the public for such use, without charge or

7

fee, on a nondiscriminatory basis. The term includes any land

8

devoted to the development and operation of an alternative

9

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

10

utilized on the tract.

11

"Agricultural use."  Land which is used for the purpose of

12

producing an agricultural commodity or is devoted to and meets

13

the requirements and qualifications for payments or other

14

compensation pursuant to a soil conservation program under an

15

agreement with an agency of the Federal Government. The term

16

includes:

17

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

18

(2)  a woodlot [and];

19

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

20

the purpose of producing an agricultural commodity; and

21

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

22

alternative energy system, if a majority of the energy annually

<--

23

generated is utilized on the tract in the production of an

<--

24

agricultural commodity or in activities performed on the

25

farmstead land.

26

* * *

27

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

28

of energy generated from a Tier I energy source.

29

"Alternative energy system."  A facility or energy system

30

that utilizes a Tier I energy source to generate alternative

- 2 -

 


1

energy. The term includes a facility or system that generates

2

alternative energy for utilization onsite or for delivery of the

3

energy generated to an energy distribution company or to an

4

energy transmission system operated by a regional transmission

5

organization.

6

* * *

7

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

<--

8

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

9

products. The term includes any land devoted to the development

10

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

11

the energy annually generated is utilized on the tract.

12

* * *

13

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

14

as defined in section 2 of the act of November 30, 2004 (P.L.

15

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

16

Standards Act."

17

* * *

18

Section 1.1.  Section 5 of the act, amended December 8, 2004

<--

19

(P.L.1785, No.235), is amended to read:

20

Section 5.  Responsibilities of the County Assessor in

21

General.--(a)  In addition to keeping such records as are now or

22

hereafter required by law, it shall be the duty of the county

23

assessor:

24

(1)  To indicate on property record cards, assessment rolls,

25

and any other appropriate records, the fair market value, the

26

normal assessed value, the land use category and the number of

27

acres enrolled in each land use category, the use value under

28

section 4.2 and the preferentially assessed value of each parcel

29

granted preferential use assessments under this act; and

30

annually, to record on such records all changes, if any, in the

- 3 -

 


1

fair market value, the normal assessed value, the land use

2

category and the number of acres enrolled in each land use

3

category, the use value under section 4.2 and the preferentially

4

assessed value of such properties.

5

(2)  To notify in writing the appropriate taxing bodies and

6

landowner of any preferential assessments granted or terminated

7

for each parcel, including the land use category and the number

8

of acres enrolled in each land use category, within their taxing

9

jurisdiction and of the reason for termination within five days

10

of such change. There shall be a right of appeal as provided by

11

section 9.

12

(3)  To notify in writing the owner of a property that is

13

preferentially assessed under this act, and the taxing bodies of

14

the district in which such property is situated, of any changes

15

in the fair market value, the normal assessed value, the land

16

use category and the number of acres enrolled in each land use

17

category, the use value under section 4.2 or the preferentially

18

assessed value within five days of such change. There shall be a

19

right of appeal as provided for in section 9.

20

(4)  To maintain a permanent record of the tax rates, in

21

mills, levied by each of the taxing authorities in the county

22

for each tax year.

23

(5)  By January 31 of each year, to report to the department

24

for the previous year the number of acres enrolled in each land

25

use category, the number of acres terminated in each land use

26

category, the dollar amount received as roll-back taxes and the

27

dollar amount received as interest on roll-back taxes.

28

(b)  It shall be the duty of the county assessor, as set

29

forth under section 8(c), to calculate roll-back taxes, give

30

notice of the amounts due to landowners and interested parties

- 4 -

 


1

and to file liens for unpaid roll-back taxes.

2

(b.1)  With respect to the development of an alternative

3

energy system which continues to meet the definition of

4

agricultural use, agricultural reserve or forest reserve, the

5

land devoted to that development and operation shall retain the

6

same land use category for preferential assessment as was

7

approved for the land before the devotion took place.

8

(c)  The preferential use assessments granted under this act

9

shall be considered by the State Tax Equalization Board in

10

determining the market value of taxable real property for school

11

subsidy purposes. The State Tax Equalization Board shall not

12

reflect the individual school district market value decrease, as

13

it relates to agricultural land, when certifying the Statewide

14

market value to the Department of Education.

15

Section 2.  Section 6 heading and (a.1) of the act is, 

<--

16

amended December 21, 1998 (P.L.1225, No.156), are amended and

17

the section is amended by adding subsections to read:

18

Section 6.  Split-off, Separation or Transfer; Leasing for

19

Wireless Service; Utilization of Land or Conveyance of Rights

20

for Exploration or Extraction of Gas, Oil or Coal Bed Methane;

21

Utilization of Land for Commercial Alternative Energy

22

Generation; Death of Landowner; Temporary Leases.--* * *(a.1)  

<--

23

(1)  The split-off of a part of land which is subject to

24

preferential assessment under this act shall subject the land so

25

split off and the entire tract from which the land was split off

26

to roll-back taxes as set forth in section 5.1, except as

27

provided in this subsection. [The landowner changing the use of

28

the land to one inconsistent with this act] The landowner who

29

conducts the split-off shall be liable for payment of roll-back

30

taxes. [The landowner of land which continues to be eligible for

- 5 -

 


1

preferential assessment shall not be liable for any roll-back

2

taxes triggered as a result of a change to an ineligible use by

3

the owner of the split-off tract. Roll-back] If one of the

4

following provisions apply, roll-back taxes under section 5.1

5

shall [not] only be due [if one of the following provisions

6

applies] as provided in this subsection:

7

(i)  The tract or tracts split off [does] do not exceed two

8

acres annually, except that a maximum of the minimum residential

9

lot size requirement annually may be split off if the property

10

is situated in a local government unit which requires a minimum

11

residential lot size of two to three acres; the tract or tracts 

12

split off [is] are used only for agricultural use, agricultural

13

reserve or forest reserve or for the construction of a

14

residential dwelling to be occupied by the person to whom the

15

land is conveyed; and the total tract or tracts so split off do

16

not exceed the lesser of ten acres or ten percent (10%) of the

17

entire tract subject to preferential assessment.

18

(ii)  The split-off occurs through a condemnation.

19

(2)  Each tract which has been split off under and meets the

20

provisions of paragraph (1)(i) shall be subject to roll-back

21

taxes for such a period of time as provided in section 5.1. The

22

landowner [changing the use of the land] who conducts the split-

23

off shall be liable for payment of roll-back taxes, which shall

24

only be due with respect to the split-off portion of land. If

25

the owner of the tract which has been split off under paragraph

26

(1)(i) subsequently changes the use of that land to an

27

ineligible use, the owner of the original tract which continues

28

to be eligible for preferential assessment shall not be liable

29

for any roll-back taxes triggered as a result.

30

(2.1)  No roll-back taxes shall be due for split-offs

- 6 -

 


1

described in paragraph (1)(ii).

2

(3)  The split-off of a tract of land which meets the

3

provisions of paragraph (1) shall not invalidate the

4

preferential assessment on any land retained by the landowner

5

which continues to meet the provisions of section 3.

6

(4)  Payment of roll-back taxes by the liable landowner shall

7

not invalidate the preferential assessment on any land which

8

continues to meet the provisions of section 3.

9

(5)  Any person may bring an action in equity to enjoin use

10

of the land inconsistent with the use provided in this

11

subsection.

12

(6)  Land which has been split off shall be deemed to be used

13

for residential use, agricultural use, agricultural reserve or

14

forest reserve unless it is demonstrated that the owner of the

15

split-off parcel is actively using the tract in a manner which

16

is inconsistent with residential use, agricultural use,

17

agricultural reserve or forest reserve.

18

* * *

19

(c.1)  Preferential assessment is subject to the following 

<--

20

The following apply:

<--

21

(1)  Land subject to preferential assessment may be leased or

22

otherwise devoted to the exploration for and removal of gas and

<--

23

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

<--

24

development of appurtenant facilities, including new roads and

25

bridges, pipelines and other buildings or structures, related to

26

exploration for and removal of gas and oil and the extraction of

27

coal bed methane.

28

(2)  The following apply:

<--

29

(i)  Portions of land subject to preferential assessment may

30

be used for exploration for and removal of gas and oil drilling

<--

- 7 -

 


1

and extraction, including the extraction of coal bed methane, 

<--

2

and the development of appurtenant facilities, including new

<--

3

roads and bridges, pipelines and other buildings or structures, 

4

related to those activities.

5

(ii) (3) Roll-back taxes shall be imposed upon those portions

<--

6

of land utilized by the landowner for gas and oil drilling and

<--

7

extraction actually devoted to activities set forth in paragraph

<--

8

(2), excluding land devoted to subsurface transmission or

9

gathering lines, which shall not be subject to roll-back taxes 

<--

10

tax. The portion of land subject to roll-back tax shall be the

<--

11

restored well site and any land which does not meet the

<--

12

requirements of land which is incapable of being immediately

<--

13

used for the agricultural use, agricultural reserve or forest

14

reserve activities required under section 3, as measured upon

<--

15

the filing of a from the well site restoration report with as

<--

16

approved by the Department of Environmental Protection as

17

required by 25 Pa. Code 78.65 (relating to site restoration) or

18

its subsequent version. A copy of this report shall be submitted

19

by the Department of Environmental Protection to the county

<--

20

assessor at the same time it is submitted to the Department of

<--

21

Environmental Protection within ten days of its approval. The

<--

22

fair market value of the restored well site and land which is

<--

23

incapable of being immediately used for the agricultural use,

24

agricultural reserve or forest reserve activities required under

25

section 3 shall be adjusted retroactively to the date of the

<--

26

permit issued was approved under section 201 of the act of

<--

27

December 19, 1984 (P.L.1140, No.223), known as the "Oil and Gas

28

Act." Roll-back taxes shall become due upon the filing of the

<--

29

approved well site restoration report with the county assessor.

30

The utilization of a portion of land for gas and oil drilling

<--

- 8 -

 


1

and extraction activities set forth in paragraph (2)shall not

<--

2

invalidate the preferential assessment of the land which is not

3

so utilized and the land shall continue to receive preferential

4

assessment if it continues to meet the requirements of section

5

3.

6

(iii) (4)  Notwithstanding subparagraph (ii) paragraph (3),

<--

7

no roll-back tax shall be imposed upon a landowner for

8

activities related to the exploration for or removal of oil or

9

gas, including the extraction of coal bed methane, conducted by

10

parties other than the landowner that hold the rights to conduct

11

such activities pursuant to an instrument, conveyance or other

12

vesting of the rights if the transfer of the rights occurred:

13

(A) (i)  before the land was enrolled for preferential

<--

14

assessment under this act; and

15

(B) (ii)  before the effective date of this section.

<--

16

(3)  A lease of land shall not be considered a subdivision

<--

17

under this subsection.

18

(c.2)  The owner of property subject to preferential

19

assessment may utilize portions of land covered by preferential

20

assessment for development and operation of a commercial

21

alternative energy system. Roll-back taxes shall be imposed upon

22

the portion of land actually devoted to the facilities utilized

23

for the generation of alternative energy. Roll-back taxes for a

24

(c.2)  The following apply:

<--

25

(1)  Portions of land subject to preferential assessment may

26

be leased or otherwise devoted to a wind power generation

27

system.

28

(2)  Roll-back taxes for a wind power generation system shall

<--

29

be imposed upon the portion of land where the foundation of the

<--

30

wind turbine is located and upon the area of surface covered by

- 9 -

 


1

appurtenant structures, including new roads, bridges,

2

transmission lines, substations and other buildings and

3

structures related to the system. The fair market value of the

4

area portion of land for which roll-back taxes have been

<--

5

assessed under this subsection shall be adjusted accordingly.

6

The utilization of a portion of the land for commercial

<--

7

alternative energy systems a wind power generation system shall

<--

8

not invalidate the preferential assessment of land which is not

9

so utilized, and such land shall continue to receive

10

preferential assessment if it continues to meet the requirements

11

of section 3. An owner who is subject to roll-back taxes under

12

this subsection shall submit a notice of the installation of a

<--

13

wind power generation system to the county assessor no later

14

than 30 days after the commercial alternative energy system is

<--

15

completed following the commencement of electricity generation

<--

16

at the wind power generation system.

17

(c.3)  The owner of property subject to preferential

18

assessment may temporarily lease a portion of the land for pipe

19

storage yards. Only one lease is permitted to the owner under

20

this subsection, and a copy of the lease shall be provided to

<--

21

the county assessor within ten days of its signing by the

22

landowner. The lease may not exceed two years. Following the

23

expiration of the two years lease, the land shall be restored to

<--

24

the original use which qualified it for preferential assessment.

25

(C.4)  The owner of property subject to preferential

<--

26

(c.4)  The following apply:

<--

27

(1)  The owner of property subject to preferential assessment

28

may lease or otherwise devote land covered by the subject to 

<--

29

preferential assessment to be used for small noncoal surface

<--

30

mining, as provided for under the act of December 19, 1984

- 10 -

 


1

(P.L.1093, No.219), known as the "Noncoal Surface Mining

2

Conservation and Reclamation Act."

3

(C.5)(2)  Roll-back taxes shall be imposed upon those

<--

4

portions of land leased or otherwise devoted by the landowner

<--

5

for to small noncoal surface mining, and the fair market value

<--

6

of those portions of the land shall be adjusted accordingly.

7

Roll-back taxes on those portions of the land shall not

8

invalidate the preferential assessment of the land which is not

9

so leased or devoted, and the land shall continue to be eligible

10

for preferential assessment if it continues to meet the

11

requirements of section 3.

12

(3)  Only one small noncoal surface mining permit may be

<--

13

active at any one time on land subject to a single application

14

for preferential assessment.

15

* * *

16

Section 3.  Section 8(b) of the act, amended December 21,

17

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

18

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

19

(b)  Unpaid roll-back taxes shall be a lien upon the property

20

collectible in the manner provided by law for the collection of

21

delinquent taxes. Roll-back taxes shall become due on the date

22

of change of use or on the date a well site restoration report

23

is filed with the county assessor under section 6(c.1)(2)(ii) 

<--

24

6(c.1)(3) or, with regard to a wind power generation system

<--

25

under section 6(c.2)(2), on the date the notice of the

26

installation of the system is received by the county assessor,

27

or any other termination of preferential assessment and shall be

28

paid by the owner of the land at the time of change in use, or

29

any other termination of preferential assessment, to the county

30

treasurer or to the tax claim bureau, as the case may be, whose

- 11 -

 


1

responsibility it shall be to make proper distribution of the

2

taxes to the taxing bodies wherein the property is located.

3

Nothing in this section shall be construed to require the taxing

4

body of a taxing district in which land enrolled in preferential

5

use is situated to accept the roll-back taxes due and payable to

6

that taxing district if the use of the land is changed for the

7

purpose of granting or donating such land to:

8

(1)  a school district;

9

(2)  a municipality;

10

(3)  a county;

11

(4)  a volunteer fire company;

12

(5)  a volunteer ambulance service;

13

(6)  a not-for-profit corporation, tax exempt under section

14

501(c)(3) of the Internal Revenue Code of 1954 (68A Stat. 3, 26

15

U.S.C. § 501(c)(3)), provided that, prior to accepting ownership

16

of the land, such corporation enters into an agreement with the

17

municipality wherein the subject land is located guaranteeing

18

that it will be used exclusively for recreational purposes, all

19

of which shall be available to the general public free of

20

charge. In the event the corporation changes the use of all or a

21

portion of the land or charges admission or any other fee for

22

the use or enjoyment of the facilities, the corporation shall

23

immediately become liable for all roll-back taxes and accrued

24

interest previously forgiven pursuant hereto; or

25

(7)  a religious organization for construction or regular use

26

as a church, synagogue or other place of worship, including

27

meeting facilities, parking facilities, housing facilities and

28

other facilities which further the religious purposes of the

29

organization.

30

* * *

- 12 -

 


1

Section 3.1.  The act is amended by adding a section to read:

<--

2

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

3

(a)  A landowner receiving preferential assessment under this

4

act may remove land from preferential assessment if:

5

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

6

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

7

the removal is requested;

8

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

9

application for preferential assessment are removed from

10

preferential assessment; and

11

(3)  the landowner pays roll-back taxes on the entire tract

12

or tracts as provided for in section 5.1.

13

(b)  Land removed from preferential assessment under this

14

section shall not be eligible to be subsequently reenrolled in

15

preferential assessment by the same landowner.

16

(c)  Nothing in this section shall be construed to prohibit a

17

landowner whose land was terminated from preferential assessment

18

under other sections of this act from reenrolling the land in

19

preferential assessment.

20

Section 4.  This act shall take effect in 60 days.

- 13 -