PRIOR PRINTER'S NOS. 786, 890 PRINTER'S NO. 2413
No. 725 Session of 1979
INTRODUCED BY MESSRS. THOMAS, YAHNER, WENGER, MRS. GEORGE,
MESSRS. WEIDNER, W. W. FOSTER, DIETZ, HELFRICK, KLINGAMAN,
MRS. HONAMAN, MESSRS. COLE,CALTAGIRONE, STAIRS, DeVERTER,
MADIGAN, WASS, BOWSER, STUBAN, D. R. WRIGHT AND BROWN,
MARCH 19, 1979
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
OCTOBER 31, 1979
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,"
8 continuing the preferential use assessment when a transfer, <--
9 separation or split-off does not change the use ADDING <--
10 DEFINITIONS, AND FURTHER PROVIDING FOR CONTINUATION OF
11 PREFERENTIAL USE ASSESSMENTS WHEN THE DIVISION OF LAND DOES
12 NOT RESULT IN A USE CHANGE, RECORDATION OR PREFERENTIAL USE
13 ASSESSMENT AGREEMENTS AND FOR TRANSFERS ON THE DEATH OF THE
14 OWNER.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Subsection (a) of section 6, act of December 19, <--
18 1974 (P.L.973, No.319), known as the "Pennsylvania Farmland and
19 Forest Land Assessment Act of 1974," is amended to read:
20 Section 6. Separation or Split-off.--(a) Separation or
21 split-off of a part of the land which is being valued, assessed
22 and taxed under this act either by conveyance or other action of
1 the owner of such land for a use other than agricultural or
2 agricultural reserve or forest reserve shall, except when the
3 separation occurs through condemnation, subject the land so
4 separated and the entire parcel from which the land was
5 separated to liability for the roll-back taxes as set forth in
6 section 8 of this act except as provided in subsection (b). When
7 the separation or split-off does not result in a use, change to
8 any portion, other than agricultural or agricultural reserve or
9 forest reserve, all portions shall continue to receive the
10 preferential use assessment and the subsequent abandonment of
11 the preferential use of one portion shall not affect the
12 preferential status of other portions.
13 * * *
14 Section 2. The act is amended by adding sections to read:
15 Section 6.1. Transfer of Entire Tract.--Notwithstanding any
16 other provision of this act, the owner of property subject to a
17 preferential tax assessment may transfer the entire tract of
18 land covered by the preferential tax assessment and the
19 preferential use assessment shall continue so long as there is
20 no change in use.
21 Section 8.1. Liability for Roll-back Taxes.--The person
22 owning the tract or parcel at the time the tax preference use is
23 abandoned shall be liable for all roll-back taxes due on the
24 tract or parcel.
25 SECTION 1. SECTION 2, ACT OF DECEMBER 19, 1974 (P.L.973, <--
26 NO.319), KNOWN AS THE "PENNSYLVANIA FARMLAND AND FOREST LAND
27 ASSESSMENT ACT OF 1974," IS AMENDED BY ADDING DEFINITIONS TO
28 READ:
29 SECTION 2. DEFINITIONS.--AS USED IN THIS ACT, THE FOLLOWING
30 WORDS AND PHRASES SHALL HAVE THE MEANINGS ASCRIBED TO THEM IN
19790H0725B2413 - 2 -
1 THIS SECTION UNLESS THE CONTEXT OBVIOUSLY OTHERWISE REQUIRES:
2 * * *
3 "ROLL-BACK TAX." THE AMOUNT EQUAL TO THE DIFFERENCE BETWEEN
4 THE TAXES PAID OR PAYABLE ON THE BASIS OF THE VALUATION AND THE
5 ASSESSMENT AUTHORIZED HEREUNDER AND THE TAXES THAT WOULD HAVE
6 BEEN PAID OR PAYABLE HAD THAT LAND BEEN VALUED, ASSESSED AND
7 TAXED AS OTHER LAND IN THE TAXING DISTRICT IN THE CURRENT TAX
8 YEAR, THE YEAR OF CHANGE, AND IN SIX OF THE PREVIOUS TAX YEARS
9 OR THE NUMBER OF YEARS OF PREFERENTIAL ASSESSMENT UP TO SEVEN.
10 "SEPARATION." A DIVISION, BY CONVEYANCE OR OTHER ACTION OF
11 THE OWNER OF LANDS DEVOTED TO AGRICULTURAL USE, AGRICULTURAL
12 RESERVE OR FOREST RESERVE AND PREFERENTIALLY ASSESSED UNDER THE
13 PROVISIONS OF THIS ACT INTO TWO OR MORE TRACTS OF LAND, THE USE
14 OF WHICH CONTINUES TO BE AGRICULTURAL, AGRICULTURAL RESERVE OR
15 FOREST RESERVE AND ALL TRACTS SO FORMED MEET THE REQUIREMENTS OF
16 SECTION 3.
17 "SPLIT-OFF." A DIVISION, BY CONVEYANCE OR OTHER ACTION OF
18 THE OWNER, OF LANDS DEVOTED TO AGRICULTURAL USE, AGRICULTURAL
19 RESERVE OR FOREST RESERVE AND PREFERENTIALLY ASSESSED UNDER THE
20 PROVISIONS OF THIS ACT INTO TWO OR MORE TRACTS OF LAND, THE USE
21 OF WHICH ON ONE OR MORE OF SUCH TRACTS DOES NOT MEET THE
22 REQUIREMENTS OF SECTION 3.
23 SECTION 2. SECTION 4 OF THE ACT IS AMENDED BY ADDING A
24 SUBSECTION TO READ:
25 SECTION 4. APPLICATIONS FOR PREFERENTIAL ASSESSMENTS.--* * *
26 (D) THE APPROVED APPLICATION FOR PREFERENTIAL ASSESSMENT
27 SHALL BE RECORDED BY THE COUNTY BOARD FOR ASSESSMENT APPEALS IN
28 THE OFFICE OF THE RECORDER OF DEEDS FOR THE COUNTY IN A
29 PREFERENTIAL ASSESSMENT DOCKET.
30 SECTION 3. SECTION 6 AND SUBSECTION (C) OF SECTION 8 ARE
19790H0725B2413 - 3 -
1 AMENDED TO READ:
2 SECTION 6. SEPARATION [OR], SPLIT-OFF OR TRANSFER.--(A)
3 [SEPARATION OR] THE SPLIT-OFF OF A PART OF THE LAND WHICH IS
4 BEING VALUED, ASSESSED AND TAXED UNDER THIS ACT [EITHER BY
5 CONVEYANCE OR OTHER ACTION OF THE OWNER OF SUCH LAND] FOR A USE
6 OTHER THAN AGRICULTURAL OR AGRICULTURAL RESERVE OR FOREST
7 RESERVE SHALL, EXCEPT WHEN THE [SEPARATION] SPLIT-OFF OCCURS
8 THROUGH CONDEMNATION, SUBJECT THE LAND SO [SEPARATED] DIVIDED
9 AND THE ENTIRE PARCEL FROM WHICH THE LAND WAS [SEPARATED]
10 DIVIDED TO LIABILITY FOR THE ROLL-BACK TAXES AS SET FORTH IN
11 SECTION 8 OF THIS ACT EXCEPT AS PROVIDED IN SUBSECTION (B).
12 (B) THE OWNER OF PROPERTY SUBJECT TO A PREFERENTIAL TAX
13 ASSESSMENT MAY [TRANSFER] SPLIT-OFF LAND COVERED BY THE
14 PREFERENTIAL TAX ASSESSMENT: PROVIDED, THAT THE TRACT OF LAND SO
15 [TRANSFERRED] SPLIT-OFF SHALL NOT EXCEED TWO ACRES ANNUALLY AND
16 MAY ONLY BE USED FOR RESIDENTIAL, AGRICULTURAL, OR FOREST
17 RESERVE USE DURING SUCH TIME AS THE LAND RETAINED SHALL CONTINUE
18 TO RECEIVE PREFERENTIAL TAX ASSESSMENT AND THE CONSTRUCTION OF A
19 RESIDENTIAL DWELLING TO BE OCCUPIED BY THE PERSON TO WHOM THE
20 LAND IS TRANSFERRED: AND FURTHER PROVIDED, THAT THE TOTAL PARCEL
21 OR PARCELS OF LAND SO [TRANSFERRED] SPLIT-OFF UNDER THE
22 PROVISIONS OF THIS SUBSECTION SHALL NOT EXCEED TEN PERCENT OR
23 TEN ACRES, WHICHEVER IS LESSER, OF THE ENTIRE TRACT SUBJECT TO
24 THE PREFERENTIAL TAX ASSESSMENT. ANY PERSON MAY BRING AN ACTION
25 IN EQUITY TO ENJOIN ANY USE OF THE LAND INCONSISTENT WITH THE
26 USE PROVIDED IN THIS SUBSECTION. SUCH LAND SHALL BE SUBJECT TO
27 ROLL-BACK TAXES DUE FOR EACH PARCEL [SEPARATED] SPLIT-OFF AND
28 FOR SUCH PERIOD OF TIME AS PROVIDED BY SECTION 8 OF THIS ACT.
29 THE [TRANSFER] SPLIT-OFF OF A PARCEL OF LAND WHICH MEETS THE
30 REQUIREMENTS OF THIS SECTION SHALL NOT INVALIDATE THE
19790H0725B2413 - 4 -
1 PREFERENTIAL TAX ASSESSMENT AND THE LAND RETAINED BY THE
2 LANDOWNER SHALL CONTINUE TO BE ELIGIBLE FOR USE VALUE ASSESSMENT
3 IF IT CONTINUES TO MEET THE [MINIMUM ACREAGE OR, IF DEVOTED TO
4 AGRICULTURAL USE, GROSS INCOME] REQUIREMENTS [ESTABLISHED BY] OF
5 SECTION 3 OF THIS ACT.
6 (C) THE OWNER OF PROPERTY SUBJECT TO A PREFERENTIAL USE
7 ASSESSMENT MAY SEPARATE LAND COVERED BY THE PREFERENTIAL USE
8 ASSESSMENT. WHEN A SEPARATION OCCURS, ALL TRACTS FORMED THEREBY
9 SHALL CONTINUE TO RECEIVE PREFERENTIAL USE ASSESSMENT, UNLESS A
10 SUBSEQUENT ABANDONMENT OF PREFERENTIAL USE OCCURS WITHIN SEVEN
11 YEARS OF THE SEPARATION. SUCH ABANDONMENT SHALL SUBJECT THE
12 ENTIRE TRACT OF LAND SO SEPARATED TO LIABILITY FOR THE ROLL-BACK
13 TAXES, WHICH ARE TO BE PAID BY THE PERSON CHANGING THE USE, AS
14 SET FORTH IN SECTION 8. AFTER SEVEN YEARS FROM THE DATE OF THE
15 OCCURRENCE OF THE SEPARATION, ONLY THAT PORTION WHOSE USE HAS
16 BEEN ABANDONED SHALL BE SUBJECT TO THE ROLL-BACK TAXES AS SET
17 FORTH IN SECTION 8.
18 (D) WHEN PROPERTY SUBJECT TO PREFERENTIAL TAX ASSESSMENT IS
19 SEPARATED AMONG THE BENEFICIARIES DESIGNATED AS CLASS A FOR
20 INHERITANCE TAX PURPOSES OF THE OWNER RECEIVING THE BENEFIT OF
21 PREFERENTIAL TAX ASSESSMENT AS A RESULT OF THE DEATH OF THE
22 OWNER A SUBSEQUENT CHANGE IN THE USE OF ONE SUCH BENEFICIARY'S
23 PORTION OF THE PROPERTY SHALL NOT SUBJECT ANY OTHER
24 BENEFICIARY'S PORTION OF THE PROPERTY DUE ROLL-BACK TAXES. ROLL-
25 BACK TAXES SHALL BE DUE ONLY IN ACCORD WITH PROVISIONS OF
26 SECTION 8 ON THE TRACT HELD BY THE BENEFICIARY WHO CHANGES THE
27 USE OF ANY PORTION OF HIS OR HER INHERITANCE.
28 [(C)] (E) ANY CHANGE IN USE [OF A SEPARATION OR SPLIT-OFF]
29 OF LAND SUBJECT TO A PREFERENTIAL USE ASSESSMENT SHALL BE IN
30 COMPLIANCE WITH THE ZONING ORDINANCES OF THE LOCAL MUNICIPALITY,
19790H0725B2413 - 5 -
1 IF IN EFFECT.
2 SECTION 8. DETERMINATION OF AMOUNTS OF TAXES WHEN USE
3 ABANDONED.--* * *
4 (C) WITHIN FIVE WORKING DAYS AFTER RECEIPT OF A NOTICE FROM
5 THE OWNER OF A PROPERTY, WHICH IS PREFERENTIALLY ASSESSED, OF A
6 PROPOSED CHANGE IN THE USE OF THE LAND, TO ONE NOT MEETING THE
7 REQUIREMENTS OF SECTION 3, OR A SPLIT-OFF OF A PORTION OF THE
8 LAND, [OR A CONVEYANCE OF THE LAND, AS PROVIDED FOR UNDER
9 SECTION 4(C),] THE COUNTY ASSESSOR SHALL:
10 (1) CALCULATE BY YEARS THE TOTAL OF ALL ROLL-BACK TAXES DUE
11 AT THE TIME OF CHANGE AND SHALL NOTIFY THE PROPERTY OWNER OF
12 SUCH AMOUNTS. IN THE CASE OF A CONVEYANCE OF ALL OR PART OF SAID
13 LAND, HE SHALL NOTIFY THE PROSPECTIVE BUYER, IF KNOWN, OF SUCH
14 AMOUNTS.
15 (2) WITH RESPECT TO THE ROLL-BACK TAXES FOR THE CURRENT
16 YEAR, HE SHALL NOTIFY THE TAXING BODIES OF THE DISTRICT IN WHICH
17 THE PROPERTY IS LOCATED OF THE ADDITIONAL AMOUNT OF ASSESSMENT
18 UPON WHICH TAXES SHALL BE LEVIED AND COLLECTED. IN THE CASE OF
19 COUNTY PROPERTY TAXES, HE SHALL NOTIFY THE TAX COLLECTOR OF THE
20 APPROPRIATE DISTRICT OF ADDITIONAL COUNTY TAX TO BE COLLECTED.
21 (3) WITH RESPECT TO ROLL-BACK TAXES FOR YEARS PRIOR TO THE
22 CURRENT YEAR WHICH THE ASSESSOR HAS DETERMINED TO BE DUE, HE
23 SHALL FILE A CLAIM FOR SUCH AMOUNTS WITH THE TAX CLAIM BUREAU OR
24 THE COUNTY TREASURER, AS THE CASE MAY BE, WHICH UPON SAID FILING
25 SHALL CONSTITUTE A LIEN HAVING THE SAME FORCE AND EFFECT AS IF
26 FILED BY THE TAXING BODIES.
27 Section 3 4. This act shall take effect immediately. <--
C14L45RLC/19790H0725B2413 - 6 -