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 › LIABILITY FOR ROLL-BACK TAXES › Section 137b.89 - Calculation of roll-back taxes

Current through Register Vol. 54, No. 28, July 13, 2024
A county assessor shall calculate roll-back taxes using the
					 following formula:
(1) If preferential
				  assessment has been in effect for 7 tax years or more, calculate the difference
				  between preferential assessment and normal assessment in the current tax year,
				  and in each of the 6 tax years immediately preceding the current tax year. If
				  preferential assessment has been in effect for less than 7 tax years, calculate
				  the difference between preferential assessment and normal assessment in the
				  current tax year, and in each of the tax years in which the enrolled land was
				  preferentially assessed.
(2) With
				  respect to each of these sums, multiply the tax difference determined under
				  Step (1) by the corresponding factor, which reflects simple interest at the
				  rate of 6% per annum from that particular tax year to the present:
Year
Factor
Current Tax Year
1.00
1 Tax Year Prior
1.06
2 Tax Years Prior
1.12
3 Tax Years Prior
1.18
4 Tax Years Prior
1.24
5 Tax Years Prior
1.30
6 Tax Years Prior
1.36
(3)
				  Add the individual products obtained under Step (2). The sum equals total
				  roll-back taxes, including simple interest at 6% per annum on each year's
				  roll-back taxes.
Example 1
: Landowner's liability for
					 roll-back taxes is triggered on July 1, 7 or more tax years after preferential
					 assessment began. The county assessor calculates the difference between the
					 preferential assessment and normal assessment in the current tax year and in
					 each of the 6 tax years preceding the current tax year, in accordance with this
					 section. The county assessor determines the appropriate sum to be $2,000 in
					 each full year.
Year
Amount
								Multiplied by Factor
Current Tax Year
$1,000 x 1.00 = $1,000
1 Tax Year Prior
$2,000 x 1.06 = $2,120
2 Tax Years Prior
$2,000 x 1.12 = $2,240
3 Tax Years Prior
$2,000 x 1.18 = $2,360
4 Tax Years Prior
$2,000 x 1.24 = $2,480
5 Tax Years Prior
$2,000 x 1.30 = $2,600
6 Tax Years Prior
$2,000 x 1.36 = $2,720
TOTAL ROLL-BACK TAXES, WITH INTEREST:
$15,520
Example 2
: Landowner's liability for
					 roll-back taxes is triggered on July 1, less than 7 tax years after
					 preferential assessment began. The county assessor calculates the difference
					 between the preferential assessment and normal assessment in the current tax
					 year and each of the tax years since preferential assessment began, in
					 accordance with this section. The county assessor determines the appropriate
					 sum to be $2,000 in each of these years. The county assessor would calculate
					 roll-back taxes and interest in accordance with the chart set forth in Example
					 1, calculating for only those tax years in which preferential assessment
					 occurred.
The provisions of this §
												137b.89 amended under section 11 of
						the Pennsylvania Farmland and Forest Land Assessment Act of 1974 (72 P. S. §
													5490.11).