HOUSE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY SMUCKER, VOGEL, D. WHITE, ALLOWAY, FONTANA, WASHINGTON, WAUGH, M. WHITE, FOLMER, EICHELBERGER AND BRUBAKER, OCTOBER 18, 2011

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, SEPTEMBER 25, 2012   

AN ACT

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

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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 and for land devoted to

agricultural use, agricultural reserve, and/or forest

reserve.

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

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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 roll-back taxes and special

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circumstances and for appeals.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "agricultural use" in section 2

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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 November 23, 2010 (P.L.1095, No.109), is 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 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;

(2)  a woodlot;

(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

generated is utilized on the tract[.]; and

(5)  any land devoted to composting or used for nutrient

management.

* * *

"Composting."  As follows:

(1)  The processing of agricultural manures into

materials, products or substances.

(2)  The term includes:

(i)  Finished compost transported or intended to be

transported in commerce.

(ii)  Any land, facility, building structure,

equipment or operation used to enhance the form, economic

value or energy value of the processed manure.

(3)  The term does not include a composting process if

materials other than manure are used as ingredients in the

composting process and the amount of the other materials by

weight exceeds the amount of manure used by weight.

* * *

"Nutrient management."  An activity directly and solely

related to the implementation of best management practices as

set forth in publications of the Environmental Protection Agency

relating to the implementation of 40 CFR Parts 9 (relating to

OMB approvals under the Paperwork Reduction Act), 122 (relating

to EPA administered permit programs: The national pollutant

discharge elimination system) and 412 (relating to concentrated

animal feeding operations). The term shall not include land or

an activity used in combination with any activity, facility or

operation otherwise prohibited under this act.

* * *

Section 2.  Section 3(a.1) of the act is amended by adding

paragraphs to read:

Section 3.  Land Devoted to Agricultural Use, Agricultural

Reserve, and/or Forest Reserve.--* * *

(a.1)  The following apply to enrollment:

* * *

(3)  Land enrolled as devoted to composting.

(4)  Land used for nutrient management.

* * *

Section 3.  The amendment of section 2 of the act shall be

applicable to any composting use already in existence that is

located upon land enrolled under the act of December 19, 1974

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

Land Assessment Act of 1974, including those composting uses

existing as of the effective date of this act for which rollback

tax may have been assessed for a composting use. Provided an

enrolled owner has filed an appeal from a decision of a county

assessor, a board of assessment appeals or a court with

jurisdiction, no rollback tax shall be due or collected from an

enrolled owner as to any composting use as composting is defined

in section 2 of the act.

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

Section 1.  The definition of "agricultural commodity" in

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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), is

amended and the section is amended by adding a definition 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 commodity."  Any of the following:

(1)  Agricultural, apicultural, aquacultural, horticultural,

floricultural, silvicultural, viticultural and dairy products.

(2)  Pasture.

(3)  Livestock and the products thereof.

(4)  Ranch-raised furbearing animals and the products

thereof.

(5)  Poultry and the products of poultry.

(6)  Products commonly raised or produced on farms which are:

(i)  intended for human consumption; or

(ii)  transported or intended to be transported in commerce.

(7)  Processed or manufactured products of products commonly

raised or produced on farms which are:

(i)  intended for human consumption; or

(ii)  transported or intended to be transported in commerce.

(8)  Compost.

* * *

"Compost."  Material resulting from the biological digestion

of dead animals, animal waste or other biodegradable materials,

at least fifty percent (50%) by volume of which is comprised of

products commonly produced on farms.

* * *

Section 2.  Section 8(d) of the act, amended December 21,

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

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

* * *

(d)  (1)  A landowner may apply a maximum of two acres of a

tract of land subject to preferential assessment toward direct

commercial sales of agriculturally related products and

activities or for a rural enterprise incidental to the

operational unit without subjecting the entire tract to roll-

back taxes, provided that:

(i)  The commercial activity is owned and operated by the

landowner or his beneficiaries who are designated as class A for

inheritance tax purposes.

(ii)  An assessment of the inventory of the goods involved

verifies that it is owned by the landowner or his beneficiaries.

(iii)  The rural enterprise does not permanently render the

land incapable of producing an agricultural commodity.

(2)  Roll-back taxes shall be imposed upon that portion of

the tract where the commercial activity takes place and the fair

market value of that tract shall be adjusted accordingly.

(3)  Notwithstanding the provisions of paragraph (2), no

roll-back taxes shall be due and no breach of a preferential

assessment shall be deemed to have occurred if the direct

commercial sales of agriculturally related products:

(i)  take place on no more than one half of an acre;

(ii)  are of at least fifty percent (50%) of products

produced on the tract; and

(iii)  require no new utilities or buildings.

* * *

Section 2 3.  Section 9 of the act is amended by adding a

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subsection to read:

Section 9.  Appeals.--* * *

(a.1)  In the event a change relating to composting in this

act becomes effective during an active appeal and is applicable

to the active appeal, no rollback tax shall be due or collected

and the rollback tax shall be reimbursed if already paid for

such activities to which rollback taxes were applied.

* * *

Section 3 4.  This act shall take effect immediately.

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