Clean and Green Rollback Taxes
January 21, 2016 11:59 AM to All Senate Members
Circulated By
Senator Donald White
R Senate District 41
Memo
I am introducing legislation in the near future to amend the Pennsylvania Farmland and Forest Land Assessment Act of 1974, also known as “Clean and Green” or Act 319, to reduce the rollback taxes and interest rate for landowners who choose to leave the program.
As you may know, the Clean and Green Act is a preferential tax assessment program that bases property taxes on use values instead of fair market values. Under the program, landowners who enroll are obligated to retain their land in agricultural, open space or forest land in order to qualify for reduced real estate taxes.
Clean and Green benefits both the landowner and the community by preserving valuable farmland and open spaces for the public, as well as addressing the property tax burden borne by farmers struggling to continue their operations. Currently, more than 9.3 million acres in Pennsylvania are enrolled in Clean and Green.
Under current law, a landowner enrolled in Clean and Green that decides to change the property’s use to one not authorized under the program is subject to up to seven years of rollback taxes at six percent interest per year. The rollback tax is the difference between what was paid under Clean and Green versus what would have been paid if the property had not been enrolled.
Over the years, the rollback tax has become onerous for landowners who—in exchange for tax relief—have forgone their rights to develop their land. While the rollback tax is imposed as an incentive to preserve agricultural land, it has also served as a deterrent for landowners who believe the penalty for withdrawing from the program is too costly. To address this, I am proposing reducing the rollback tax requirement from seven years to one year, and the interest rate on the rollback taxes from six percent to one percent plus prime (capped at six percent).
I believe reducing the rollback tax and interest will encourage landowners to not only participate in the Clean and Green program, but also encourage them to more seriously consider leaving Clean and Green to explore potential development opportunities.
If you have any questions please contact Anne Achenbach, of my staff, at 7-4404 or at aachenbach@pasen.gov.
As you may know, the Clean and Green Act is a preferential tax assessment program that bases property taxes on use values instead of fair market values. Under the program, landowners who enroll are obligated to retain their land in agricultural, open space or forest land in order to qualify for reduced real estate taxes.
Clean and Green benefits both the landowner and the community by preserving valuable farmland and open spaces for the public, as well as addressing the property tax burden borne by farmers struggling to continue their operations. Currently, more than 9.3 million acres in Pennsylvania are enrolled in Clean and Green.
Under current law, a landowner enrolled in Clean and Green that decides to change the property’s use to one not authorized under the program is subject to up to seven years of rollback taxes at six percent interest per year. The rollback tax is the difference between what was paid under Clean and Green versus what would have been paid if the property had not been enrolled.
Over the years, the rollback tax has become onerous for landowners who—in exchange for tax relief—have forgone their rights to develop their land. While the rollback tax is imposed as an incentive to preserve agricultural land, it has also served as a deterrent for landowners who believe the penalty for withdrawing from the program is too costly. To address this, I am proposing reducing the rollback tax requirement from seven years to one year, and the interest rate on the rollback taxes from six percent to one percent plus prime (capped at six percent).
I believe reducing the rollback tax and interest will encourage landowners to not only participate in the Clean and Green program, but also encourage them to more seriously consider leaving Clean and Green to explore potential development opportunities.
If you have any questions please contact Anne Achenbach, of my staff, at 7-4404 or at aachenbach@pasen.gov.
Legislation
Document - Introduced as SB 1136
Clean and Green Rollback Taxes
January 21, 2016 11:59 AM to All Senate Members
Circulated By
WHITE
Memo
I am introducing legislation in the near future to amend the Pennsylvania Farmland and Forest Land Assessment Act of 1974, also known as “Clean and Green” or Act 319, to reduce the rollback taxes and interest rate for landowners who choose to leave the program.
As you may know, the Clean and Green Act is a preferential tax assessment program that bases property taxes on use values instead of fair market values. Under the program, landowners who enroll are obligated to retain their land in agricultural, open space or forest land in order to qualify for reduced real estate taxes.
Clean and Green benefits both the landowner and the community by preserving valuable farmland and open spaces for the public, as well as addressing the property tax burden borne by farmers struggling to continue their operations. Currently, more than 9.3 million acres in Pennsylvania are enrolled in Clean and Green.
Under current law, a landowner enrolled in Clean and Green that decides to change the property’s use to one not authorized under the program is subject to up to seven years of rollback taxes at six percent interest per year. The rollback tax is the difference between what was paid under Clean and Green versus what would have been paid if the property had not been enrolled.
Over the years, the rollback tax has become onerous for landowners who—in exchange for tax relief—have forgone their rights to develop their land. While the rollback tax is imposed as an incentive to preserve agricultural land, it has also served as a deterrent for landowners who believe the penalty for withdrawing from the program is too costly. To address this, I am proposing reducing the rollback tax requirement from seven years to one year, and the interest rate on the rollback taxes from six percent to one percent plus prime (capped at six percent).
I believe reducing the rollback tax and interest will encourage landowners to not only participate in the Clean and Green program, but also encourage them to more seriously consider leaving Clean and Green to explore potential development opportunities.
If you have any questions please contact Anne Achenbach, of my staff, at 7-4404 or at aachenbach@pasen.gov.
As you may know, the Clean and Green Act is a preferential tax assessment program that bases property taxes on use values instead of fair market values. Under the program, landowners who enroll are obligated to retain their land in agricultural, open space or forest land in order to qualify for reduced real estate taxes.
Clean and Green benefits both the landowner and the community by preserving valuable farmland and open spaces for the public, as well as addressing the property tax burden borne by farmers struggling to continue their operations. Currently, more than 9.3 million acres in Pennsylvania are enrolled in Clean and Green.
Under current law, a landowner enrolled in Clean and Green that decides to change the property’s use to one not authorized under the program is subject to up to seven years of rollback taxes at six percent interest per year. The rollback tax is the difference between what was paid under Clean and Green versus what would have been paid if the property had not been enrolled.
Over the years, the rollback tax has become onerous for landowners who—in exchange for tax relief—have forgone their rights to develop their land. While the rollback tax is imposed as an incentive to preserve agricultural land, it has also served as a deterrent for landowners who believe the penalty for withdrawing from the program is too costly. To address this, I am proposing reducing the rollback tax requirement from seven years to one year, and the interest rate on the rollback taxes from six percent to one percent plus prime (capped at six percent).
I believe reducing the rollback tax and interest will encourage landowners to not only participate in the Clean and Green program, but also encourage them to more seriously consider leaving Clean and Green to explore potential development opportunities.
If you have any questions please contact Anne Achenbach, of my staff, at 7-4404 or at aachenbach@pasen.gov.
Document
Introduced as SB 1136
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