SENATE AMENDED
PRIOR PRINTER'S NOS. 1261, 2775, 2888, PRINTER'S NO. 3849
2973, 3017,3640
No. 1056 Session of 1973
INTRODUCED BY MESSRS. KENNEDY, WEIDNER, THOMAS, R. W. WILT,
DeVERTER, GRIECO, KLINGAMAN, C. S. SMITH, BRANDT, FOOR,
SHUMAN, ZELLER, MORRIS, PIPER, ANDERSON, YAHNER, A. C. FOSTER
JR., DREIBELBIS, TURNER, McGINNIS AND BIXLER, MAY 30, 1973
AS AMENDED ON SECOND CONSIDERATION, IN SENATE, OCTOBER 2, 1974
AN ACT
1 Prescribing the procedure under which an owner may have land
2 devoted to agricultural use, agricultural reserve use, or <--
3 forest reserve use, valued for tax purposes at the value it
4 has for such uses, and providing for reassessment and certain
5 interest payments when such land is applied to other uses.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short Title.--This act shall be known and may be
9 cited as the "Pennsylvania Farmland and Forest Land Assessment
10 Act of 1974."
11 Section 2. Definitions.--As used in this act, the following
12 words and phrases shall have the meanings ascribed to them in
13 this section unless the context obviously otherwise requires:
14 "Agricultural commodity." Any and all plant and animal
15 products including Christmas trees produced in this State for
16 commercial purposes.
17 "Agricultural reserve." Land which has a potential to <--
1 produce agricultural commodities.
2 "Agricultural use." Use of the land for the purpose of
3 producing an agricultural commodity or when devoted to and
4 meeting the requirements and qualifications for payments or
5 other compensation pursuant to a soil conservation program under
6 an agreement with an agency of the Federal Government.
7 "Farmer-owner-operator." A natural person who derives income
8 from the agricultural yield of land devoted to agricultural use
9 which he owns and operates.
10 "Forest reserve." Land, ten acres or more, stocked by forest
11 trees of any size and capable of producing timber or other wood
12 products.
13 Section 3. Land Devoted to Agricultural Use, Agricultural <--
14 Reserve, and/or Forest Reserve, Woodlots.--(a) For general
15 property tax purposes, the value of land which is presently
16 devoted to agricultural use, agricultural reserve, and/or forest <--
17 reserve shall on application of the owner and approval thereof
18 as hereinafter provided be that value which such land has for
19 its particular use if it also meets the following conditions:
20 (1) Land presently devoted to agricultural use: Such land
21 was devoted to agricultural use the preceding three years and is
22 not less than ten contiguous acres in area or has an anticipated
23 yearly gross income of two thousand dollars ($2,000).
24 (2) Land presently devoted to agricultural reserve: Such <--
25 land is not less than ten contiguous acres in area.
26 (3) Land presently devoted to forest reserve: Such land is
27 not less than ten contiguous acres in area.
28 (3) THE CONTIGUOUS TRACT OF LAND FOR WHICH APPLICATION IS <--
29 MADE IS NOT LESS THAN THE ENTIRE CONTIGUOUS AREA USED BY THE
30 OWNER FOR AGRICULTURAL OR FOREST RESERVE PURPOSES.
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1 (b) The assessor when determining the value of land in
2 agricultural use, agricultural reserve use, or forest reserve <--
3 use, shall, in arriving at the value of such land for its
4 particular use, consider available evidence of such lands'
5 capability for its particular use as derived from the soil
6 survey at the Pennsylvania State University, the National
7 Cooperative Soil Survey, the United States Census of
8 Agricultural Categories of land use classes, and evidence of the
9 capability of land devoted to such use.
10 (c) Farm woodlots, contiguous to, and held by the same
11 ownership as other agricultural or agricultural reserve land is <--
12 not required to conform to the ten acre minimum forest reserve
13 requirement.
14 Section 4. County Board of Assessment and Revision of <--
15 Taxes.--(a) The county board for the assessment and revision of
16 taxes shall have the responsibility to accept and process
17 applications for preferential assessments as prescribed by this
18 act.
19 (b) In addition to keeping such records as are now or
20 hereafter required by law, the county shall clearly indicate on
21 the appropriate records those parcels that are assessed under
22 the provisions of this act. It shall be the duty of the county
23 board for the assessment and revision of taxes to immediately
24 notify the appropriate taxing bodies of any preferential
25 assessment granted or cancelled within their taxing
26 jurisdictions.
27 Section 5. Applications for Preferential Assessment.--(a)
28 Each owner of agricultural land, agricultural reserve and/or
29 forest reserve, desiring preferential use assessment under this
30 act, shall make application to the county board for the
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1 assessment and revision of taxes of the county in which the land
2 is located. Such application must be submitted on or before July
3 first of the year immediately preceding the tax year.
4 Preferential assessment shall continue under the initial
5 application until land use change takes place.
6 (b) There shall be uniform application forms for
7 preferential assessment in all counties. Such application forms
8 shall be developed by the Department of Agriculture. In addition
9 to the information which the Department of Agriculture shall
10 deem appropriate, the following statement shall be included:
11 "The applicant for preferential assessment hereby agrees that
12 if his application is approved for preferential assessment to
13 submit ten days' notice to the county assessor of a proposed
14 change in use of the land, a split-off of a portion of the land,
15 or a conveyance of the land."
16 The assessor shall notify the prospective buyer of any roll-
17 back tax due if a change in use occurs.
18 SECTION 4. APPLICATIONS FOR PREFERENTIAL ASSESSMENTS.--(A) <--
19 THE COUNTY BOARD FOR ASSESSMENT APPEALS SHALL HAVE THE
20 RESPONSIBILITY TO ACCEPT AND PROCESS APPLICATIONS FOR
21 PREFERENTIAL ASSESSMENTS AS PRESCRIBED BY THIS ACT.
22 (B) EACH OWNER OF AGRICULTURAL LAND, AGRICULTURAL RESERVE <--
23 AND/OR FOREST RESERVE, DESIRING PREFERENTIAL USE ASSESSMENT
24 UNDER THIS ACT, SHALL MAKE APPLICATION TO THE COUNTY BOARD OF
25 ASSESSMENT APPEALS OF THE COUNTY IN WHICH THE LAND IS LOCATED.
26 SUCH APPLICATION MUST BE SUBMITTED ON OR BEFORE JULY FIRST OF
27 THE YEAR IMMEDIATELY PRECEDING THE TAX YEAR. PREFERENTIAL
28 ASSESSMENT SHALL CONTINUE UNDER THE INITIAL APPLICATION UNTIL
29 LAND USE CHANGE TAKES PLACE.
30 (C) THERE SHALL BE UNIFORM APPLICATION FORMS FOR
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1 PREFERENTIAL ASSESSMENT IN ALL COUNTIES. SUCH APPLICATION FORMS
2 SHALL BE DEVELOPED BY THE DEPARTMENT OF AGRICULTURE. IN ADDITION
3 TO THE INFORMATION WHICH THE DEPARTMENT OF AGRICULTURE SHALL
4 DEEM APPROPRIATE, THE FOLLOWING STATEMENT SHALL BE INCLUDED:
5 "THE APPLICANT FOR PREFERENTIAL ASSESSMENT HEREBY AGREES, IF
6 HIS APPLICATION IS APPROVED FOR PREFERENTIAL ASSESSMENT, TO
7 SUBMIT THIRTY DAYS NOTICE TO THE COUNTY ASSESSOR OF A PROPOSED
8 CHANGE IN USE OF THE LAND, A SPLIT-OFF OF A PORTION OF THE LAND,
9 OR A CONVEYANCE OF THE LAND."
10 SECTION 5. RESPONSIBILITIES OF THE COUNTY ASSESSOR.--(A) IN
11 ADDITION TO KEEPING SUCH RECORDS AS ARE NOW OR HEREAFTER
12 REQUIRED BY LAW, IT SHALL BE THE DUTY OF THE COUNTY ASSESSOR:
13 (1) TO INDICATE ON PROPERTY RECORD CARDS, ASSESSMENT ROLLS,
14 AND ANY OTHER APPROPRIATE RECORDS, THE FAIR MARKET VALUE, THE
15 NORMAL ASSESSED VALUE AND THE PREFERENTIALLY ASSESSED VALUE OF
16 EACH PARCEL GRANTED PREFERENTIAL USE ASSESSMENTS UNDER THIS ACT;
17 AND ANNUALLY, TO RECORD ON SUCH RECORDS ALL CHANGES, IF ANY, IN
18 THE FAIR MARKET VALUE, THE NORMAL ASSESSED VALUE AND THE
19 PREFERENTIALLY ASSESSED VALUE OF SUCH PROPERTIES.
20 (2) TO NOTIFY THE APPROPRIATE TAXING BODIES OF ANY
21 PREFERENTIAL ASSESSMENTS GRANTED OR TERMINATED WITHIN THEIR
22 TAXING JURISDICTION WITHIN FIVE DAYS OF SUCH CHANGE.
23 (3) TO NOTIFY THE OWNER OF A PROPERTY THAT IS PREFERENTIALLY
24 ASSESSED UNDER THIS ACT AND THE TAXING BODIES OF THE DISTRICT IN
25 WHICH SUCH PROPERTY IS SITUATED OF ANY CHANGES IN THE FAIR
26 MARKET VALUE, THE NORMAL ASSESSED VALUE OR PREFERENTIALLY
27 ASSESSED VALUE WITHIN FIVE DAYS OF SUCH CHANGE. THERE SHALL BE A
28 RIGHT OF APPEAL AS PROVIDED FOR IN SECTION 9 OF THIS ACT.
29 (4) TO MAINTAIN A PERMANENT RECORD OF THE TAX RATES IN MILLS
30 LEVIED BY EACH OF THE TAXING AUTHORITIES IN THE COUNTY FOR EACH
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1 TAX YEAR.
2 (B) IT SHALL BE THE DUTY OF THE COUNTY ASSESSOR, AS SET
3 FORTH UNDER SECTION 8(C) OF THIS ACT, TO CALCULATE ROLL-BACK
4 TAXES, GIVE NOTICE OF THE AMOUNTS DUE TO INTERESTED PARTIES AND
5 TO ESTABLISH LIENS FOR UNPAID ROLL-BACK TAXES.
6 (C) THE PREFERENTIAL USE ASSESSMENTS GRANTED UNDER THIS ACT <--
7 SHALL NOT BE CONSIDERED BY THE STATE TAX EQUALIZATION BOARD IN
8 DETERMINING THE MARKET VALUE OF TAXABLE REAL PROPERTY FOR SCHOOL
9 SUBSIDY PURPOSES.
10 Section 6. Separation or Split-off.--(a) Separation or
11 split-off of a part of the land which is being valued, assessed
12 and taxed under this act either by conveyance or other action of
13 the owner of such land for a use other than agricultural or <--
14 agricultural reserve or forest reserve shall, except when the
15 separation occurs through condemnation, subject the land so
16 separated and the entire parcel from which the land was
17 separated to liability for the roll-back taxes as set forth in
18 section 8 of this act except as provided in subsections (b) or
19 (c) of this section.
20 (b) The owner of property subject to a preferential tax
21 assessment may transfer land covered by the preferential tax
22 assessment: to any member of his immediate family without <--
23 incurring roll-back taxes: Provided, That the tract of land so
24 transferred shall not exceed two acres ANNUALLY and may only be <--
25 used for the construction of a residential dwelling to be
26 occupied by the family member to which PERSON TO WHOM the land <--
27 is transferred: AND FURTHER PROVIDED, THAT THE TOTAL PARCEL OR <--
28 PARCELS OF LAND SO TRANSFERRED UNDER THE PROVISIONS OF THIS
29 SUBSECTION SHALL NOT EXCEED TEN PERCENT OF THE ENTIRE TRACT
30 SUBJECT TO THE PREFERENTIAL TAX ASSESSMENT. ANY PERSON MAY BRING
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1 AN ACTION IN EQUITY TO ENJOIN ANY USE OF THE LAND INCONSISTENT
2 WITH THE USE PROVIDED IN THIS SUBSECTION. SUCH LAND SHALL BE
3 SUBJECT TO ROLL-BACK TAXES DUE FOR EACH PARCEL SEPARATED AND FOR
4 SUCH PERIOD OF TIME AS PROVIDED BY SECTION 8 OF THIS ACT. The
5 transfer of a parcel of land to a family member which meets the <--
6 requirements of this section shall not invalidate the
7 preferential tax assessment and the land retained by the
8 landowner shall continue to be eligible for use value assessment
9 if it continues to meet the minimum acreage or, if devoted to
10 agricultural use, gross income requirements established by this
11 act.
12 (c) A present owner or a farmer-owner-operator of land <--
13 devoted to agricultural use and subject to preferential
14 assessment may split-off not more than ten acres in any year
15 without incurring roll-back taxes on the remaining land and
16 without impairing the right of the remaining land to continue
17 its preferential assessment status so long as it otherwise meets
18 the requirements of this act. In each such case, the land
19 separated shall be subject to roll-back taxes as set forth in
20 section 8(b).
21 (d) (C) Any change in use of a separation or split-off of <--
22 land shall be in compliance with the zoning ordinances of the
23 local municipality, if in effect.
24 Section 7. Contiguous Land in More Than One Taxing
25 District.--Where contiguous land in agricultural, or <--
26 agricultural reserve, and/or forest reserve use in one ownership
27 is located in more than one taxing district, compliance with the
28 minimum area requirement shall be determined on the basis of the
29 total area of such land and not the area which is located in the
30 particular taxing district.
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1 Section 8. Determination of Amounts of Taxes When Use
2 Abandoned.--(a) When any tract of land which is in agricultural
3 use, or agricultural reserve use or forest reserve use and which <--
4 is being valued, assessed and taxed under the provisions of this
5 act, is applied to a use other than agricultural, agricultural <--
6 reserve or forest reserve, or for any other reason, except
7 condemnation thereof, is removed from the category of land
8 preferentially assessed and taxed under this act, the land so
9 removed and the entire tract of which it was a part shall be
10 subject to taxes in an amount equal to the difference,
11 hereinafter referred to as roll-back taxes, if any, between the
12 taxes paid or payable on the basis of the valuation and the
13 assessment authorized hereunder and the taxes that would have
14 been paid or payable had that land been valued, assessed and
15 taxed as other land in the taxing district in the current tax
16 year, the year of change, and in nine FOUR of the previous tax <--
17 years or the number of years of preferential assessment up to
18 ten FIVE, plus interest on each year's roll-back tax at the rate <--
19 of six percent (6%) per annum. After the first ten FIVE years of <--
20 preferential assessment, the roll-back shall apply to the ten <--
21 FIVE most recent tax years. <--
22 (b) Unpaid roll-back taxes shall be a lien upon the property
23 collectible in the manner provided by law for the collection of
24 delinquent taxes. Roll-back taxes shall become due on the date
25 of change of use, or any other termination of preferential
26 assessment and shall be paid by the owner of the land at the
27 time of change in use, or any other termination of PREFERENTIAL <--
28 assessment, to the county treasurer OR TO THE TAX CLAIM BUREAU, <--
29 AS THE CASE MAY BE, whose responsibility it shall be to make
30 proper distribution of the taxes and interest to the taxing
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1 bodies wherein the property is located.
2 (C) WITHIN FIVE WORKING DAYS AFTER RECEIPT OF A NOTICE FROM <--
3 THE OWNER OF A PROPERTY, WHICH IS PREFERENTIALLY ASSESSED, OF A
4 PROPOSED CHANGE IN THE USE OF THE LAND, A SPLIT-OFF OF A PORTION
5 OF THE LAND, OR A CONVEYANCE OF THE LAND, AS PROVIDED FOR UNDER
6 SECTION 4(C), THE COUNTY ASSESSOR SHALL:
7 (1) CALCULATE BY YEARS THE TOTAL OF ALL ROLL-BACK TAXES DUE
8 AT THE TIME OF CHANGE AND SHALL NOTIFY THE PROPERTY OWNER OF
9 SUCH AMOUNTS. IN THE CASE OF A CONVEYANCE OF ALL OR PART OF SAID
10 LAND, HE SHALL NOTIFY THE PROSPECTIVE BUYER, IF KNOWN, OF SUCH
11 AMOUNTS.
12 (2) WITH RESPECT TO THE ROLL-BACK TAXES FOR THE CURRENT
13 YEAR, HE SHALL NOTIFY THE TAXING BODIES OF THE DISTRICT IN WHICH
14 THE PROPERTY IS LOCATED OF THE ADDITIONAL AMOUNT OF ASSESSMENT
15 UPON WHICH TAXES SHALL BE LEVIED AND COLLECTED. IN THE CASE OF
16 COUNTY PROPERTY TAXES, HE SHALL NOTIFY THE TAX COLLECTOR OF THE
17 APPROPRIATE DISTRICT OF ADDITIONAL COUNTY TAX TO BE COLLECTED.
18 (3) WITH RESPECT TO ROLL-BACK TAXES FOR YEARS PRIOR TO THE
19 CURRENT YEAR WHICH THE ASSESSOR HAS DETERMINED TO BE DUE, HE
20 SHALL FILE A CLAIM FOR SUCH AMOUNTS WITH THE TAX CLAIM BUREAU OR
21 THE COUNTY TREASURER, AS THE CASE MAY BE, WHICH UPON SAID FILING
22 SHALL CONSTITUTE A LIEN HAVING THE SAME FORCE AND EFFECT AS IF
23 FILED BY THE TAXING BODIES.
24 Section 9. Appeals.--There shall be a right of appeal which <--
25 shall conform to practice in the particular county in which
26 preferential assessment is being sought.
27 SECTION 9. APPEALS.--(A) THE OWNER OF A PROPERTY UPON WHICH <--
28 A PREFERENTIAL ASSESSMENT IS SOUGHT, AND THE POLITICAL
29 SUBDIVISION IN WHICH SAID PROPERTY IS SITUATED, SHALL HAVE THE
30 RIGHT OF APPEAL IN ACCORDANCE WITH EXISTING LAW.
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1 (B) WHEN ROLL-BACK TAXES FOR PRIOR YEARS ARE TO BE COLLECTED
2 AS PROVIDED ABOVE, NO PERSON AND NO POLITICAL SUBDIVISION SHALL
3 BE PERMITTED TO QUESTION ANY ASSESSMENT OF ANY PRIOR YEAR BEFORE
4 THE BOARD OF ASSESSMENT APPEALS UNLESS A TIMELY APPEAL WAS FILED
5 PURSUANT TO THE REQUIREMENTS OF THE ACTS OF ASSEMBLY RELATING TO
6 ASSESSMENT APPEALS DURING THE TIME PERIOD FOR WHICH APPEALS FOR
7 THAT YEAR WOULD NORMALLY BE TAKEN.
8 Section 10. Renegotiation of Open Space Agreements.--Any
9 county which has covenanted with land owners of farm or forest
10 land as to assessments and open space use of such land under the
11 act of January 13, 1966 (1965 P.L.1292, No.515), entitled "An
12 act enabling certain counties of the Commonwealth to covenant
13 with land owners for preservation of land in farm, forest, water
14 supply, or open space uses," may, at the landowner's option,
15 renegotiate such agreements so as to make them conform to the
16 provisions of this act as to preferential assessments.
17 Section 11. Applicability to Tax Year and Subsequent Tax <--
18 Years.--The tax year 1974 1975 shall be deemed to be the first <--
19 tax year in which the provisions of this act shall apply, and
20 this act shall apply to the tax year 1974 1975 and subsequent <--
21 tax years.
22 SECTION 12. 11. RULES AND REGULATIONS.--THE SECRETARY OF THE <--
23 DEPARTMENT OF AGRICULTURE SHALL PROMULGATE RULES AND REGULATIONS
24 NECESSARY TO PROMOTE THE EFFICIENT, UNIFORM, STATEWIDE
25 ADMINISTRATION OF THE ACT.
26 Section 12. 13. 12. Applicability.--This act shall apply to <--
27 all counties of the Commonwealth of Pennsylvania.
28 Section 13. 14. 13. Severability; Inconsistent Laws.--If any <--
29 section, provision, or clause of this act shall be declared
30 invalid or inapplicable to any persons or circumstances, such
19730H1056B3849 - 10 -
1 action shall not be construed to affect the rest of the act or
2 circumstances not so affected. All laws or portions of laws
3 inconsistent with the policy and provisions of this act are
4 hereby repealed to that extent.
5 SECTION 14. EFFECTIVE DATE.--THIS ACT SHALL TAKE EFFECT <--
6 IMMEDIATELY.
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