Bill Text: PA SB298 | 2009-2010 | Regular Session | Amended

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Bill Title: Further providing for definitions, for general responsibilities of county assessors, for split-off, separation or transfer and for roll-back taxes and special circumstances.

Spectrum: Strong Partisan Bill (Republican 14-1)

Status: (Passed) 2010-10-27 - Act No. 88 [SB298 Detail]

Download: Pennsylvania-2009-SB298-Amended.html

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HOUSE AMENDED
PRIOR PRINTER'S NOS. 593, 1142, 1624, 2034 PRINTER'S NO. 2255
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 298 Session of2009
INTRODUCED BY YAW, BAKER, WAUGH, KITCHEN, SCARNATI, M. WHITE, ORIE, D. WHITE, WONDERLING, RAFFERTY, GORDNER, BROWNE, FOLMER, ALLOWAY AND VANCE, MARCH 5, 2009
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 5, 2010
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 general responsibilities of
county assessors, for split-off, separation or transfer and
for roll-back taxes and special circumstances; and providing <--
for removal of land from preferential assessment.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "agricultural reserve,"
"agricultural use" and "forest reserve" in 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) and December 8,
2004 (P.L.1785, No.235), are 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 reserve." Noncommercial open space lands used
for outdoor recreation or the enjoyment of scenic or natural
beauty and open to the public for such use, without charge or
fee, on a nondiscriminatory basis. The term includes 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.
"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 annually
generated is utilized on the tract.
* * *
"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
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energy generated to an energy distribution company or to an
energy transmission system operated by a regional transmission
organization.
* * *
"Forest reserve." Land, ten acres or more, stocked by forest
trees of any size and capable of producing timber or other wood
products. The term includes 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.
* * *
"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."
* * *
Section 1.1. Section 5 of the act, amended December 8, 2004
(P.L.1785, No.235), is amended to read:
Section 5. Responsibilities of the County Assessor in
General.--(a) In addition to keeping such records as are now or
hereafter required by law, it shall be the duty of the county
assessor:
(1) To indicate on property record cards, assessment rolls,
and any other appropriate records, the fair market value, the
normal assessed value, the land use category and the number of
acres enrolled in each land use category, the use value under
section 4.2 and the preferentially assessed value of each parcel
granted preferential use assessments under this act; and
annually, to record on such records all changes, if any, in the
fair market value, the normal assessed value, the land use
category and the number of acres enrolled in each land use
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category, the use value under section 4.2 and the preferentially
assessed value of such properties.
(2) To notify in writing the appropriate taxing bodies and
landowner of any preferential assessments granted or terminated
for each parcel, including the land use category and the number
of acres enrolled in each land use category, within their taxing
jurisdiction and of the reason for termination within five days
of such change. There shall be a right of appeal as provided by
section 9.
(3) To notify in writing the owner of a property that is
preferentially assessed under this act, and the taxing bodies of
the district in which such property is situated, of any changes
in the fair market value, the normal assessed value, the land
use category and the number of acres enrolled in each land use
category, the use value under section 4.2 or the preferentially
assessed value within five days of such change. There shall be a
right of appeal as provided for in section 9.
(4) To maintain a permanent record of the tax rates, in
mills, levied by each of the taxing authorities in the county
for each tax year.
(5) By January 31 of each year, to report to the department
for the previous year the number of acres enrolled in each land
use category, the number of acres terminated in each land use
category, the dollar amount received as roll-back taxes and the
dollar amount received as interest on roll-back taxes.
(b) It shall be the duty of the county assessor, as set
forth under section 8(c), to calculate roll-back taxes, give
notice of the amounts due to landowners and interested parties
and to file liens for unpaid roll-back taxes.
(b.1) With respect to the development of an alternative
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energy system which continues to meet the definition of
agricultural use, agricultural reserve or forest reserve, the
land devoted to that development and operation shall retain the
same land use category for preferential assessment as was
approved for the land before the devotion took place.
(c) The preferential use assessments granted under this act
shall be considered by the State Tax Equalization Board in
determining the market value of taxable real property for school
subsidy purposes. The State Tax Equalization Board shall not
reflect the individual school district market value decrease, as
it relates to agricultural land, when certifying the Statewide
market value to the Department of Education.
Section 2. Section 6 heading and (a.1) of the act, amended
December 21, 1998 (P.L.1225, No.156), are amended and the
section is amended by adding subsections to read:
Section 6. Split-off, Separation or Transfer; Leasing for
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.--(a.1) (1)
The split-off of a part of land which is subject to preferential
assessment under this act shall subject the land so split off
and the entire tract from which the land was split off to roll-
back taxes as set forth in section 5.1, except as provided in
this subsection. [The landowner changing the use of the land to
one inconsistent with this act] The landowner who conducts the
split-off shall be liable for payment of roll-back taxes. [The
landowner of land which continues to be eligible for
preferential assessment shall not be liable for any roll-back
taxes triggered as a result of a change to an ineligible use by
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the owner of the split-off tract. Roll-back] If one of the
following provisions apply, roll-back taxes under section 5.1
shall [not] only be due [if one of the following provisions
applies] as provided in this subsection:
(i) The tract or tracts split off [does] do not exceed two
acres annually, except that a maximum of the minimum residential
lot size requirement annually may be split off if the property
is situated in a local government unit which requires a minimum
residential lot size of two to three acres; the tract or tracts
split off [is] are used only for agricultural use, agricultural
reserve or forest reserve or for the construction of a
residential dwelling to be occupied by the person to whom the
land is conveyed; and the total tract or tracts so split off do
not exceed the lesser of ten acres or ten percent (10%) of the
entire tract subject to preferential assessment.
(ii) The split-off occurs through a condemnation.
(2) Each tract which has been split off under and meets the
provisions of paragraph (1)(i) shall be subject to roll-back
taxes for such a period of time as provided in section 5.1. The
landowner [changing the use of the land] who conducts the split-
off shall be liable for payment of roll-back taxes, which shall
only be due with respect to the split-off portion of land. If
the owner of the tract which has been split off under paragraph
(1)(i) subsequently changes the use of that land to an
ineligible use, the owner of the original tract which continues
to be eligible for preferential assessment shall not be liable
for any roll-back taxes triggered as a result.
(2.1) No roll-back taxes shall be due for split-offs a <--
split-off described in paragraph (1)(ii).
(3) The split-off of a tract of land which meets the
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provisions of paragraph (1) shall not invalidate the
preferential assessment on any land retained by the landowner
which continues to meet the provisions of section 3.
(4) Payment of roll-back taxes by the liable landowner shall
not invalidate the preferential assessment on any land which
continues to meet the provisions of section 3.
(5) Any person may bring an action in equity to enjoin use
of the land inconsistent with the use provided in this
subsection.
(6) Land which has been split off shall be deemed to be used
for residential use, agricultural use, agricultural reserve or
forest reserve unless it is demonstrated that the owner of the
split-off parcel is actively using the tract in a manner which
is inconsistent with residential use, agricultural use,
agricultural reserve or forest reserve.
* * *
(c.1) The following apply:
(1) Land subject to preferential assessment may be leased or
otherwise devoted to the exploration for and removal of gas and
oil, including the extraction of coal bed methane, and the
development of appurtenant facilities, including new roads and
bridges, pipelines and other buildings or structures, related to
exploration for and removal of gas and oil and the extraction of
coal bed methane.
(2) Portions of land subject to preferential assessment may
be used for exploration for and removal of gas and oil,
including the extraction of coal bed methane, and the
development of appurtenant facilities, including new roads and
bridges, pipelines and other buildings or structures, related to
those activities.
20090SB0298PN2255 - 7 -
(3) Roll-back taxes shall be imposed upon those portions of
land actually devoted to activities set forth in paragraph (2),
excluding land devoted to subsurface transmission or gathering
lines, which shall not be subject to roll-back tax. The portion
of land subject to roll-back tax shall be the restored well site
and land which is incapable of being immediately used for the
agricultural use, agricultural reserve or forest reserve
activities required under section 3, as measured from the well
site restoration report as approved by 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 by the Department of
Environmental Protection to the county assessor within ten days
of its approval. The fair market value of the restored well site
and land which is incapable of being immediately used for the
agricultural use, agricultural reserve or forest reserve
activities required under section 3 shall be adjusted
retroactively to the date the a permit was approved under <--
section 201 of the act of December 19, 1984 (P.L.1140, No.223),
known as the "Oil and Gas Act." Roll-back taxes shall become due
upon the filing of the approved well site restoration report
with the county assessor. The utilization of a portion of land
for activities set forth in paragraph (2) shall not invalidate
the preferential assessment of the land which is not so utilized
and the land shall continue to receive preferential assessment
if it continues to meet the requirements of section 3.
(4) Notwithstanding paragraph (3), no roll-back tax 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
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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:
(i) before the land was enrolled for preferential assessment
under this act; and
(ii) before the effective date of this section.
(c.2) The following apply: <--
(1) Portions of land subject to preferential assessment may
be leased or otherwise devoted to a wind power generation
system.
(2) Roll-back taxes for a wind power generation system shall
be imposed upon the portion of 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
portion of land for which roll-back taxes have been assessed
under this subsection shall be adjusted accordingly. The
utilization of a portion of the land for a wind power generation
system 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 of the
installation of a wind power generation system to the county
assessor no later than 30 days following the commencement of
electricity generation at the wind power generation system
(Reserved). <--
(c.3) The owner of property subject to preferential
assessment may temporarily lease a portion of the land for pipe
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storage yards, provided, however, that roll-back taxes shall be <--
imposed upon those portions of land subject to preferential
assessment that are temporarily leased or otherwise devoted for
pipe storage yards, and the fair market value of those portions
of land shall be adjusted accordingly. The imposition of roll-
back taxes on portions of land temporarily leased or devoted for
pipe storage yards shall not invalidate the preferential
assessment of land which is not so leased or devoted, and that
land shall continue to be eligible for preferential assessment
if it continues to meet the requirements of section 3. Only one
lease is permitted to the owner under this subsection is <--
permitted to a landowner, and a copy of the lease shall be
provided to the county assessor within ten days of its signing
by the landowner. The lease may shall not exceed two years and <--
shall not be extended or renewed. Following the expiration of
the lease, the land shall be restored to the original use which
qualified it for preferential assessment.
(c.4) The following apply: <--
(1) The owner of property subject to preferential assessment
may lease or otherwise devote land subject to preferential
assessment to 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."
(2) Roll-back taxes shall be imposed upon those portions of
land leased or otherwise devoted to 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
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continues to meet the requirements of section 3.
(3) Only one small noncoal surface mining permit may be
active at any one time on land subject to a single application
for preferential assessment.
* * *
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 with the county assessor under section 6(c.1)(3) or, <--
with regard to a wind power generation system under section
6(c.2)(2), on the date the notice of the installation of the
system is received by the county assessor, 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;
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(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.
* * *
Section 3.1. The act is amended by adding a section to read: <--
Section 8.1. Removal of Land From Preferential Assessment.—-
(a) A landowner receiving preferential assessment under this
act may remove land from preferential assessment if:
(1) the landowner notifies in writing the county assessor by
June 1 of the year immediately preceding the tax year for which
the removal is requested;
(2) the entire tract or tracts enrolled on a single
application for preferential assessment are removed from
preferential assessment; and
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(3) the landowner pays roll-back taxes on the entire tract
or tracts as provided for in section 5.1.
(b) Land removed from preferential assessment under this
section shall not be eligible to be subsequently reenrolled in
preferential assessment by the same landowner.
(c) Nothing in this section shall be construed to prohibit a
landowner whose land was terminated from preferential assessment
under other sections of this act from reenrolling the land in
preferential assessment.
Section 4. This act shall take effect in 60 days.
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