Pennsylvania Code › Title 7 - AGRICULTURE › Part V-C - Farmland and Forest Land › Chapter 137b - PREFERENTIAL ASSESSMENT OF FARMLAND AND FOREST LAND UNDER THE CLEAN AND GREEN ACT › IMPACT OF SPECIFIC EVENTS OR USES ON PREFERENTIAL ASSESSMENT › Section 137b.71 - Death of an owner of enrolled land

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Inheriting a tract that does not
				  meet minimum requirements for preferential assessment
. Upon the death
				  of an owner of enrolled land, if any of the enrolled land that is divided among
				  the beneficiaries designated as Class A for inheritance tax purposes no longer
				  meets the minimum qualifications for preferential assessment, preferential
				  assessment shall terminate with respect to the portion of the enrolled land
				  that no longer meets the minimum requirements for preferential assessment, and
				  no roll-back tax may be charged on any of the land that no longer meets the
				  requirements for preferential assessment.
Example
: Landowner A owns 100 acres of
					 enrolled land, which is in agricultural use. Landowner A dies, and the land is
					 divided among several Class A beneficiaries, as follows: Landowner B-75 acres.
					 Landowner C-2 acres. Landowner D-23 acres. The tracts owned by Landowners B and
					 D continue in agricultural use. The 2-acre tract owned by Landowner C no longer
					 meets the size or income requirements in section 3 of the act (72 P. S. §
												5490.3). Under these facts, preferential
					 assessment of the 2-acre tract ends. Landowner C does not owe roll-back taxes
					 with respect to this tract. Landowners B and D continue to receive preferential
					 assessment. Landowners B and D must file amended applications.
(b)
Inheriting a tract that meets the
				  minimum requirements for preferential assessment
. If a person
				  designated a Class A beneficiary inherits a tract that meets the minimum
				  requirements for preferential assessment, and the tract continues in
				  agricultural use, agricultural reserve or forest reserve, preferential
				  assessment shall continue. If a person designated a Class A beneficiary
				  inherits a tract that meets the minimum requirements for preferential
				  assessment, and subsequently changes the use of that tract so that it does not
				  qualify for preferential assessment, that beneficiary shall owe roll-back taxes
				  and interest with respect to the portion of the enrolled land he inherited, but
				  no roll-back taxes are due with respect to any other portion of the enrolled
				  land inherited by another beneficiary.
Example 1
: Landowner A owns 100 acres of
					 enrolled land, which is in agricultural use. Landowner A dies, and Landowners B
					 and C each inherit a 50-acre tract, as Class A beneficiaries. The tracts owned
					 by Landowners B and C continue in agricultural use. Preferential assessment
					 continues on each tract, and the landowners must file amended
					 applications.
Example 2
: Same facts as Example 1, except
					 Landowner B converts the 50-acre tract of agricultural land to industrial use.
					 Landowner B owes roll-back taxes and interest with respect to the 50-acre
					 tract. Landowner A does not owe roll-back taxes. Preferential assessment
					 continues with respect to Landowner A's tract.
This section cited in 7 Pa. Code §
												137b.52 (relating to duration of
						preferential assessment).