Bill Text: PA HB1394 | 2009-2010 | Regular Session | Amended

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Bill Title: Further providing for definitions, for split-off, separation or transfer of land and for penalty for ineligible use; and providing for removal of land from preferential assessment.

Spectrum: Moderate Partisan Bill (Democrat 17-4)

Status: (Passed) 2010-11-23 - Act No. 109 [HB1394 Detail]

Download: Pennsylvania-2009-HB1394-Amended.html

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SENATE AMENDED
PRIOR PRINTER'S NOS. 1715, 2055, 2211, 4050 PRINTER'S NO. 4467
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1394 Session of2009
INTRODUCED BY HOUGHTON, HANNA, GEORGE, GERGELY, CALTAGIRONE, CARROLL, DALEY, GODSHALL, KESSLER, KORTZ, MILLARD, SIPTROTH, SOLOBAY, WHITE, ROAE, BRADFORD, McILVAINE SMITH, YOUNGBLOOD, GIBBONS, MATZIE AND MENSCH, APRIL 30, 2009
SENATOR CORMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, OCTOBER 12, 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 responsibilities of the county <--
assessor in general, and, for split-off, separation or <--
transfer of land and for roll-back taxes and special <--
circumstances and for penalty for ineligible use; 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 in the production of an agricultural <--
commodity or in activities performed on the farmstead land.
"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 in the production of an <--
agricultural commodity or in activities performed on the
farmstead land.
* * *
"Alternative energy." Electricity, heat or other usable form
of energy generated from a Tier I energy source.
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"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.
* * *
"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 in the <--
production of an agricultural commodity or in activities
performed on the farmstead land.
* * *
"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 2. Section 5 of the act is amended by adding a <--
subsection to read:
Section 5. Responsibilities of the County Assessor in
General.--* * *
(b.1) Portions of land devoted to the development and
operation of an alternative energy system meeting the definition
of agricultural use, agricultural reserve or forest reserve
shall retain the same land use category for preferential
assessment as was approved for the land before the devotion took
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place.
Section 3. Sections 6 and 8(b) of the act, amended December
21, 1998 (P.L.1225, No.156), are amended to read:
Section 6. Split-off, Separation or Transfer; Other Use.--
(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. The landowner
changing the use of the land to one inconsistent with this act
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 the owner of the
split-off tract. Roll-back taxes under section 5.1 shall not be
due if one of the following provisions applies:
(i) The tract split off does 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 split off
is 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 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
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of the land shall be liable for payment of roll-back taxes.
(3) The split-off of a tract of land which meets the
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.
(a.2) The owner of land subject to preferential assessment
may separate land. If a separation occurs, all tracts formed by
the separation shall continue to receive preferential assessment
unless, within seven years of the separation, there is a
subsequent change of use to one inconsistent with the provisions
of section 3. Such subsequent change in use shall subject the
entire tract so separated to roll-back taxes as set forth in
section 5.1. The landowner changing the use of the land to one
inconsistent with the provisions of section 3 shall be liable
for payment of roll-back taxes. After seven years from the date
of the separation, only that portion of land which has had its
use changed to one which is inconsistent with the provisions of
section 3 shall be subject to roll-back taxes as set forth in
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section 5.1. Payment of roll-back taxes shall not invalidate the
preferential assessment on any land which continues to meet the
provisions of section 3.
(a.3) If ownership of land subject to a single application
for preferential assessment is transferred to another landowner,
the land shall continue to receive preferential assessment, and
no roll-back taxes shall be due unless there is a subsequent
change of use to one inconsistent with the provisions of section
3. The landowner changing the use of the land to one
inconsistent with the provisions of section 3 shall be liable
for payment of roll-back taxes. Payment of roll-back taxes shall
not invalidate the preferential assessment on any land which
continues to meet the provisions of section 3.
(b.1) The owner of property subject to preferential
assessment may lease land covered by the preferential assessment
to be used for wireless or cellular telecommunication when the
following conditions are satisfied:
(1) The tract of land so leased does not exceed one-half of
an acre.
(2) The tract of land does not have more than one
communication tower.
(3) The tract of land is accessible.
(4) The tract of land is not sold or subdivided. A lease of
land shall not be considered a subdivision under this paragraph.
(b.2) Use of land under this section for wireless services
other than wireless telecommunications may only qualify if such
wireless services share a tower with a wireless
telecommunications provider as provided for in subsection (b.1).
Roll-back taxes shall be imposed upon the tract of land leased
by the landowner for wireless or cellular telecommunications
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purposes and the fair market value of that tract of land shall
be adjusted accordingly. The lease of such a tract of land shall
not invalidate the preferential assessment of the land which is
not so leased, and such land shall continue to be eligible for
preferential assessment if it continues to meet the requirements
of section 3.
(b.3) The wireless or cellular communications provider shall
be solely responsible for obtaining required permits in
connection with any construction on a tract of land which it
leases pursuant to the provisions of this section for
telecommunications purposes. No permit requested pursuant to
this section shall be denied by a municipality for any reason
other than failure to strictly comply with permit application
procedures.
(c.1) (1) Land subject to preferential assessment may be
leased or otherwise devoted to the exploration for and removal
of oil and gas, including the extraction of coal bed methane,
and the development of appurtenant facilities, including, but
not limited to, new roads and bridges, pipelines and other
buildings or structures related to those activities.
(2) Portions of land subject to preferential assessment may
be used for exploration for or removal of oil and gas, including
the extraction of coal bed methane, and the development of
appurtenant facilities, including, but not limited to, new roads
and bridges, pipelines and other buildings or structures related
to those activities.
(c.2) Roll-back taxes shall be imposed upon those portions
of the land actually devoted to the activities set forth in
subsection (c.1)(2), excluding land devoted solely to subsurface
transmission or gathering lines which shall not be subject to
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roll-back tax. The portion of land subject to roll-back tax
shall be the restored well site and any portion of land that
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. Within
ten days of its approval, a copy of this report shall be
furnished by the Department of Environmental Protection to the
county board for assessment appeals. The fair market value of
the restored well site and any land that does not meet the
requirements of section 3 shall be adjusted to begin on the date
of approval of a permit issued in accordance with the provisions
of the act of December 19, 1984 (P.L.1140, No.223), known as the
"Oil and Gas Act," and payable upon the filing of a well site
restoration report. The use of a portion of land under
subsection (c.1)(2) shall not invalidate the preferential
assessment of the land which is not so used, and the land shall
continue to receive preferential assessment if it continues to
meet the requirements of section 3.
(c.3) Notwithstanding subsection (c.2), no roll-back taxes
shall be imposed upon a landowner for activities related to the
exploration for and removal of oil and gas, including the
extraction of coal bed methane, occurring after the effective
date of this section if all of the following conditions are met:
(1) The activities are conducted exclusively by parties
other than the landowner.
(2) The activities are conducted pursuant to an instrument,
conveyance or other vesting of such rights occurring before the
land received a preferential assessment under this act and
before the effective date of this subsection.
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(3) The activities are not conducted pursuant to a lease.
(c.4) The owner of property subject to preferential
assessment may lease or devote land covered by the preferential
assessment to be used for a wind power generation system.
(c.5) Roll-back taxes shall be imposed upon those portions
Section 1.1. Section 5.1 of the act, added December 21, 1998 <--
(P.L.1225, No.156), is amended to read:
Section 5.1. Penalty for Ineligible Use.--If a landowner
removes land from a preferential assessment under section 8.1,
if a landowner changes the use of any tract of land subject to
preferential assessment under this act to one which is
inconsistent with the provisions of section 3 or if for any
other reason the land is removed from a land use category under
section 3, except for a condemnation of the land, the land so
removed and the entire tract of which it was a part shall be
subject to roll-back taxes plus interest on each year's roll-
back tax at the rate of six percent (6%) per annum. After the
first seven years of preferential assessment, the roll-back tax
shall apply to the seven most recent tax years.
Section 2. Section 6 of the act is amended by adding <--
subsections to read:
Section 6. Split-off, Separation or Transfer.--* * *
(c.1) (Reserved).
(c.2) The following shall 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 shall be imposed upon those portions of
the land actually devoted by the landowner for wind power
generation system purposes and the fair market value of those
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portions of the land shall be adjusted accordingly. The wind
power generation system shall include the foundation of the wind
turbine and the area of the surface covered by appurtenant
structures, including, but not limited to, new roads and
bridges, transmission lines, substations and other buildings or
structures related to the wind power generation system. Roll- <--
back taxes on those portions of the land shall not invalidate
the preferential assessment of any other land covered by the
preferential assessment and such land shall continue to be
eligible for preferential assessment if it continues to meet the
requirements of section 3.
(c.6) The owner of property subject to preferential
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. At any one time, a landowner may only have one
active small noncoal surface mining permit as required under 25
Pa. Code § 77.108 (relating to permit for small noncoal
operations) per application for preferential assessment.
(c.7) 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.
(d) Upon the death of a landowner receiving preferential
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assessment under this act, if land subject to preferential
assessment is divided among the beneficiaries designated as
class A for inheritance tax purposes and, as a result of such
division, one or more tracts no longer meet the provisions of
section 3, no roll-back tax shall be due on any of the land
which previously qualified for preferential assessment. A
subsequent change in the use of one such beneficiary's portion
of the divided land shall not subject any other beneficiary's
portion of the divided land to roll-back taxes. Roll-back taxes
shall be due only in accordance with the provisions of section
5.1 on the tract held by the beneficiary who changes the use of
any portion of his or her inheritance.
(e) Any change in use of land subject to preferential
assessment shall be in compliance with the zoning ordinances of
the local municipality, if in effect. 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 installation of a wind power
generation system to the county assessor no later than thirty
days following the commencement of electricity generation at the
wind power generation system.
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
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of change of use, or when a well site restoration report is <--
filed under section 6(c.2), or with regard to a wind power <--
generation system under section 6(c.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;
(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
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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 4. 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 is removed from
preferential assessment; and
(3) the landowner pays rollback 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 5. This act shall take effect as follows: <--
(1) The addition of section 8.1 of the act shall take
effect in 60 days.
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(2) The remainder of this act shall take effect
immediately.
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