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| PRIOR PRINTER'S NOS. 593, 1142 | PRINTER'S NO. 1624 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY YAW, BAKER, WAUGH, KITCHEN, SCARNATI, M. WHITE, ORIE, D. WHITE, WONDERLING, RAFFERTY, GORDNER, BROWNE, FOLMER, ALLOWAY AND VANCE, MARCH 5, 2009 |
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| SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, JANUARY 26, 2010 |
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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 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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 | <-- |
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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 | <-- |
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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 |
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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 |
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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 |
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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 | * * * |
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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. |
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