THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY YAW, BAKER, WAUGH, KITCHEN, SCARNATI, M. WHITE, ORIE, D. WHITE, WONDERLING, RAFFERTY, GORDNER, BROWNE, FOLMER, ALLOWAY AND VANCE, MARCH 5, 2009

SENATOR BRUBAKER, AGRICULTURE AND RURAL AFFAIRS, AS AMENDED, JUNE 9, 2009   

AN ACT

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

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 split-off, separation or

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transfer and for roll-back taxes and special circumstances.

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The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 6 of the act of December 19, 1974

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

Land Assessment Act of 1974, is amended by adding subsections to

read:

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 December 21, 1998 (P.L.1225, No.156), 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:

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"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[. The term includes];

(2)  a woodlot [and];

(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 generated

is utilized on the tract in the production of an agricultural

commodity or in activities performed on the farmstead land.

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"Alternative energy."  Electricity, heat or other usable form

of energy generated from a Tier I energy source.

"Alternative energy system."  A facility or energy system

that utilizes a Tier I energy source to generate alternative

energy. The term includes a facility or system that generates

alternative energy for utilization onsite or for delivery of the

energy generated to an energy distribution company or to an

energy transmission system operated by a regional transmission

organization.

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"Tier I energy source."  A Tier I alternative energy source,

as defined in section 2 of the act of November 30, 2004 (P.L.

1672, No.213), known as the "Alternative Energy Portfolio

Standards Act."

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Section 2.  Section 6 heading of the act is amended and the

section is amended by adding subsections to read:

Section 6.  Split-off, Separation or Transfer; Leasing for

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Wireless Service; Utilization of Land or Conveyance of Rights

for Exploration or Extraction of Gas, Oil or Coal Bed Methane;

Utilization of Land for Commercial Alternative Energy

Generation; Death of Landowner; Temporary Leases.--* * *

(b.4)  (1)  The owner of property subject to preferential

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assessment may lease land covered by the preferential assessment

for gas and oil exploration.

(2)  (i)  The owner of property subject to preferential

assessment may utilize portions of the land covered by the

(c.1)  Preferential assessment is subject to the following:

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(1)  Land subject to preferential assessment may be leased or

otherwise devoted to the exploration of gas and oil.

(2)  The following apply:

(i)  Portions of land subject to preferential assessment may

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be used for gas and oil drilling and extraction if the following

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conditions are satisfied:

(A)  Each tract of land so utilized is accessible.

(B)  Each tract or tracts of land are not sold or subdivided.

(ii)  Roll-back taxes shall be imposed upon the tract or

tracts of land utilized by the landowner for gas and oil

drilling and the fair market value of that tract or tracts of

land shall be adjusted accordingly. The utilization of a tract

or tracts and the development of appurtenant facilities related

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to those activities.

(ii)  Roll-back taxes shall be imposed upon those portions of

land utilized by the landowner for gas and oil drilling and

extraction, excluding land devoted to subsurface transmission or

gathering lines, which shall not be subject to roll-back taxes.

The portion of land subject to roll-back tax shall be the

restored well site and any land which does not meet the

requirements of section 3, as measured upon the filing of a well

site restoration report with the Department of Environmental

Protection as required by 25 Pa. Code 78.65 (relating to site

restoration) or its subsequent version. A copy of this report

shall be submitted to the county assessor at the same time it is

submitted to the Department of Environmental Protection. The

fair market value of the restored well site shall be adjusted

retroactively to the date of the permit issued under section 201

of the act of December 19, 1984 (P.L.1140, No.223), known as the

"Oil and Gas Act." The utilization of a portion of land for gas

and oil drilling and extraction shall not invalidate the

preferential assessment of the land which is not so utilized and

the land shall continue to be eligible for receive preferential

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assessment if it continues to meet the requirements of section

3.

(iii)  Notwithstanding subparagraph (ii), no roll-back tax

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shall be imposed upon a landowner for activities related to the

exploration for or removal of oil or gas, including the

extraction of coal bed methane, conducted by parties other than

the landowner that hold the rights to conduct such activities

pursuant to an instrument, conveyance or other vesting of the

rights if the transfer of the rights occurred:

(A)  before the land was enrolled for preferential assessment

under this act; and

(B)  before the effective date of this section.

(3)  A lease of land shall not be considered a subdivision

under this subsection.

(b.5)  The lessee of the tract or tracts of land used for gas

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and oil exploration or gas and oil drilling and extraction shall

be solely responsible for obtaining required permits in

connection with any construction on a tract or tracts of land

which it leases under this section for gas and oil exploration

or gas and oil drilling and extraction. No permit requested

under this section shall be denied by a municipality for any

reason other than failure to strictly comply with permit

application procedures.

(c.2)  The owner of property subject to preferential 

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assessment may utilize portions of land covered by preferential

assessment for development and operation of a commercial

alternative energy system. Roll-back taxes shall be imposed upon

the portion of land actually devoted to the facilities utilized

for the generation of alternative energy. Roll-back taxes for a

wind generation system shall be imposed upon the land where the

foundation of the wind turbine is located and upon the area of

surface covered by appurtenant structures, including new roads,

bridges, transmission lines, substations and other buildings and

structures related to the system. The fair market value of the

area for which roll-back taxes have been assessed under this

subsection shall be adjusted accordingly. The utilization of a

portion of the land for commercial alternative energy systems

shall not invalidate the preferential assessment of land which

is not so utilized, and such land shall continue to receive

preferential assessment if it continues to meet the requirements

of section 3. An owner who is subject to roll-back taxes under

this subsection shall submit a notice to the county assessor no

later than 30 days after the commercial alternative energy

system is completed.

(c.3)  The owner of property subject to preferential

assessment may temporarily lease a portion of the land for pipe

storage yards. Only one lease is permitted to the owner under

this subsection. The lease may not exceed two years. Following

the expiration of the two years, the land shall be restored to

the original use which qualified it for preferential assessment.

(C.4)  The owner of property subject to preferential

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assessment may lease or devote land covered by the preferential

assessment to be used for small noncoal surface mining, as

provided for under the act of December 19, 1984 (P.L.1093,

No.219), known as the "Noncoal Surface Mining Conservation and

Reclamation Act."

(C.5)  Roll-back taxes shall be imposed upon those portions

of land leased or devoted by the landowner for small noncoal

surface mining, and the fair market value of those portions of

the land shall be adjusted accordingly. Roll-back taxes on those

portions of the land shall not invalidate the preferential

assessment of the land which is not so leased or devoted, and

the land shall continue to be eligible for preferential

assessment if it continues to meet the requirements of section

3.

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Section 3.  Section 8(b) of the act, amended December 21,

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

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

(b)  Unpaid roll-back taxes shall be a lien upon the property

collectible in the manner provided by law for the collection of

delinquent taxes. Roll-back taxes shall become due on the date

of change of use or on the date a well site restoration report

is filed under section 6(c.1)(2)(ii), or any other termination

of preferential assessment and shall be paid by the owner of the

land at the time of change in use, or any other termination of

preferential assessment, to the county treasurer or to the tax

claim bureau, as the case may be, whose responsibility it shall

be to make proper distribution of the taxes to the taxing bodies

wherein the property is located. Nothing in this section shall

be construed to require the taxing body of a taxing district in

which land enrolled in preferential use is situated to accept

the roll-back taxes due and payable to that taxing district if

the use of the land is changed for the purpose of granting or

donating such land to:

(1)  a school district;

(2)  a municipality;

(3)  a county;

(4)  a volunteer fire company;

(5)  a volunteer ambulance service;

(6)  a not-for-profit corporation, tax exempt under section

501(c)(3) of the Internal Revenue Code of 1954 (68A Stat. 3, 26

U.S.C. § 501(c)(3)), provided that, prior to accepting ownership

of the land, such corporation enters into an agreement with the

municipality wherein the subject land is located guaranteeing

that it will be used exclusively for recreational purposes, all

of which shall be available to the general public free of

charge. In the event the corporation changes the use of all or a

portion of the land or charges admission or any other fee for

the use or enjoyment of the facilities, the corporation shall

immediately become liable for all roll-back taxes and accrued

interest previously forgiven pursuant hereto; or

(7)  a religious organization for construction or regular use

as a church, synagogue or other place of worship, including

meeting facilities, parking facilities, housing facilities and

other facilities which further the religious purposes of the

organization.

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Section 2 4.  This act shall take effect in 60 days.

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