PRIOR PRINTER'S NO. 534
PRINTER'S NO. 862
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
556
Session of
2015
INTRODUCED BY McILHINNEY, VULAKOVICH, GREENLEAF, SCHWANK,
HUGHES, MENSCH, YUDICHAK, RAFFERTY, DINNIMAN AND TOMLINSON,
FEBRUARY 25, 2015
SENATOR EICHELBERGER, FINANCE, AS AMENDED, MAY 6, 2015
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in realty transfer tax, further providing FOR
DEFINITIONS AND for excluded transactions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1102-C.3 of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding a clause to read:
Section 1102-C.3. Excluded Transactions.--The tax imposed by
section 1102-C shall not be imposed upon:
* * *
(18.1) A transfer of a conservation easement in perpetuity
having as its purpose the preservation of open space or
agricultural land to the United States, the Commonwealth or any
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of their instrumentalities, agencies or political subdivisions
or a conservancy which possesses a tax-exempt status pursuant to
section 501(c)(3) of the Internal Revenue Code of 1986 (Public
Law 99-514, 26 U.S.C. § 501(c)(3)) and which has as its primary
purpose preservation of land for historic, recreational, scenic
agricultural or open-space opportunities.
* * *
SECTION 1. SECTION 1101-C OF THE ACT OF MARCH 4, 1971
(P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS AMENDED
BY ADDING A DEFINITION TO READ:
SECTION 1101-C. DEFINITIONS.--THE FOLLOWING WORDS WHEN USED
IN THIS ARTICLE SHALL HAVE THE MEANINGS ASCRIBED TO THEM IN THIS
SECTION:
* * *
"CONSERVANCY." A CORPORATION OR ASSOCIATION THAT POSSESSES A
TAX-EXEMPT STATUS PURSUANT TO SECTION 501(C)(3) OF THE INTERNAL
REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 501(C)(3))
AND WHICH HAS AS ITS PRIMARY PURPOSE PRESERVATION OF LAND FOR
HISTORIC, RECREATIONAL, SCENIC, AGRICULTURAL OR OPEN-SPACE
OPPORTUNITIES.
* * *
SECTION 2. SECTION 1102-C.3(18) OF THE ACT, AMENDED MAY 7,
1997 (P.L.85, NO.7), IS AMENDED TO READ:
SECTION 1102-C.3. EXCLUDED TRANSACTIONS.--THE TAX IMPOSED BY
SECTION 1102-C SHALL NOT BE IMPOSED UPON:
* * *
(18) ANY OF THE FOLLOWING:
(I) A TRANSFER TO A CONSERVANCY. [WHICH POSSESSES A TAX-
EXEMPT STATUS PURSUANT TO SECTION 501(C)(3) OF THE INTERNAL
REVENUE CODE OF 1954 (68A STAT. 3, 26 U.S.C. § 501(C)(3)) AND
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WHICH HAS AS ITS PRIMARY PURPOSE PRESERVATION OF LAND FOR
HISTORIC, RECREATIONAL, SCENIC, AGRICULTURAL OR OPEN-SPACE
OPPORTUNITIES; OR A]
(II) A TRANSFER FROM [SUCH] A CONSERVANCY TO THE UNITED
STATES, THE COMMONWEALTH OR TO ANY OF THEIR INSTRUMENTALITIES,
AGENCIES OR POLITICAL SUBDIVISIONS[; OR ANY].
(III) A TRANSFER FROM [SUCH] A CONSERVANCY WHERE THE REAL
ESTATE IS ENCUMBERED BY A PERPETUAL AGRICULTURAL CONSERVATION
EASEMENT AS DEFINED BY THE ACT OF JUNE 30, 1981 (P.L.128,
NO.43), KNOWN AS THE "AGRICULTURAL AREA SECURITY LAW," AND SUCH
CONSERVANCY HAS OWNED THE REAL ESTATE FOR AT LEAST TWO YEARS
IMMEDIATELY PRIOR TO THE TRANSFER.
(IV) A TRANSFER OF AN AGRICULTURAL CONSERVATION EASEMENT TO
OR FROM THE COMMONWEALTH, A COUNTY, A LOCAL GOVERNMENT UNIT OR A
CONSERVANCY UNDER AUTHORITY OF THE "AGRICULTURAL AREA SECURITY
LAW."
(V) A TRANSFER OF A CONSERVATION EASEMENT OR PRESERVATION
EASEMENT UNDER THE ACT OF JUNE 22, 2001 (P.L.390, NO.29), KNOWN
AS THE "CONSERVATION AND PRESERVATION EASEMENTS ACT."
* * *
Section 2 3. This act shall take effect immediately.
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