§ 5490.2. Definitions
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: October 24, 2012
Effective: October 24, 2012
72 P.S. § 5490.2
§ 5490.2. 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 commodity.” Any of the following:
(1) Agricultural, apicultural, aquacultural, horticultural, floricultural, silvicultural, viticultural and dairy products.
(2) Pasture.
(3) Livestock and the products thereof.
(4) Ranch-raised furbearing animals and the products thereof.
(5) Poultry and the products of poultry.
(6) Products commonly raised or produced on farms which are:
(i) intended for human consumption; or
(ii) transported or intended to be transported in commerce.
(7) Processed or manufactured products of products commonly raised or produced on farms which are:
(i) intended for human consumption; or
(ii) transported or intended to be transported in commerce.
(8) Compost.
“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;
(2) a woodlot;
(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.
“Agritainment.” Farm-related tourism or farm-related entertainment activities, which are permitted or authorized by a landowner in return for a fee on agricultural land for recreational or educational purposes. The term includes, but is not limited to, corn mazes, hay mazes, farm tours and hay rides. The term does not include activities authorized under section 8(d).1
“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 energy generated to an energy distribution company or to an energy transmission system operated by a regional transmission organization.
“Capitalization rate.” The percentage rate used to convert income to value, as determined by the most recent five-year rolling average of fifteen-year fixed loan interest rates offered to landowners by the Federal Agricultural Mortgage Corporation or other similar Federal agricultural lending institution, adjusted to include the landowner's risk of investment and the effective tax rate.
“Compost.” Material resulting from the biological digestion of dead animals, animal waste or other biodegradable materials, at least fifty percent (50%) by volume of which is comprised of products commonly produced on farms.
“Contiguous tract.” All portions of one operational unit as described in the deed or deeds, whether or not the portions are divided by streams, public roads or bridges and whether or not the portions are described as multiple tax parcels, tracts, purparts or other property identifiers. The term includes supportive lands, such as unpaved field access roads, drainage areas, border strips, hedgerows, submerged lands, marshes, ponds and streams.
“Contributory value of farm building.” The value of the farm building as an allocated portion of the total fair market value assigned to the tract, irrespective of replacement cost of the building.
“County commissioners.” The board of county commissioners or other similar body in home rule charter counties.
“Curtilage.” The land surrounding a residential structure and farm building used for a yard, driveway, on-lot sewage system or access to any building on the tract.
“Department.” The Department of Agriculture of the Commonwealth.
“Farm building.” A structure utilized to store, maintain or house farm implements, agricultural commodities or crops, livestock and livestock products, as defined in the act of June 30, 1981 (P.L. 128, No. 43),2 known as the “Agricultural Area Security Law.”
“Farmstead land.” Any curtilage and land situated under a residence, farm building or other building which supports a residence, including a residential garage or workshop.
“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.
“Income approach.” The method of valuation which uses a capitalization rate to convert annual net income to an estimate of present value. Present value is equal to the net annual return to land divided by the capitalization rate.
“Land use category.” Agricultural use, agricultural reserve or forest reserve.
“Net return to land.” Annual net income per acre after operating expenses are subtracted from gross income. Calculation of operating expenses shall not include interest or principal payments.
“Recreational activity.” Includes, but is not limited to:
(1) Hunting.
(2) Fishing.
(3) Swimming.
(4) Access for boating.
(5) Animal riding.
(6) Camping.
(7) Picnicking.
(8) Hiking.
(9) Agritainment activities.
(10) Operation of nonmotorized vehicles.
(11) Viewing or exploring a site for aesthetic or historical benefit or for entertainment.
(12) Operation of motorized vehicles if the operation is:
(i) over an existing lane and incidental to an activity described in paragraphs (1) through (10); or
(ii) necessary to remove an animal which has been hunted under paragraph (1).
“Roll-back tax.” The amount equal to the difference between the taxes paid or payable on the basis of the valuation and the assessment authorized hereunder and the taxes that would have been paid or payable had that land been valued, assessed and taxed as other land in the taxing district in the current tax year, the year of change, and in six of the previous tax years or the number of years of preferential assessment up to seven.
“Separation.” A division, by conveyance or other action of the owner, of lands devoted to agricultural use, agricultural reserve or forest reserve and preferentially assessed under the provisions of this act, into two or more tracts of land, the use of which continues to be agricultural use, agricultural reserve or forest reserve and all tracts so formed meet the requirements of section 3.3
“Split-off.” A division, by conveyance or other action of the owner, of lands devoted to agricultural use, agricultural reserve or forest reserve and preferentially assessed under the provisions of this act into two or more tracts of land, the use of which on one or more of such tracts does not meet the requirements of section 3.
“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),4 known as the “Alternative Energy Portfolio Standards Act.”
“Tract.” A lot, piece or parcel or land. The term does not refer to any precise dimension of land.
“USDA-ERS.” The United States Department of Agriculture-Economic Research Service.
“USDA-NRCS.” The United States Department of Agriculture-Natural Resources Conservation Service.
“Woodlot.” An area of less than ten acres, stocked by trees of any size and contiguous to or part of land in agricultural use or agricultural reserve.
Credits
1974, Dec. 19, P.L. 973, No. 319, § 2, imd. effective. Amended 1980, March 24, P.L. 45, No. 15, § 1, imd. effective; 1998, Dec. 21, P.L. 1225, No. 156, § 1, imd. effective; 2004, Dec. 8, P.L. 1785, No. 235, § 1, effective in 60 days [Feb. 7, 2005]; 2010, Oct. 27, P.L. 866, No. 88, § 1, effective in 60 days [Dec. 27, 2010]; 2010, Nov. 23, P.L. 1095, No. 109, § 1, imd. effective; 2012, Oct. 24, P.L. 1499, No. 190, § 1, imd. effective.
72 P.S. § 5490.2, PA ST 72 P.S. § 5490.2
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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