Understanding the Significance of ACT 319 in Pennsylvania

In Pennsylvania, property owners and prospective buyers often hear about ACT 319, but its significance and benefits might not be immediately clear. Officially known as the Pennsylvania Farmland and Forest Land Assessment Act of 1974, or more commonly "Clean and Green," ACT 319 is a pivotal statute designed to encourage the preservation of agricultural, open space, and forested lands through tax incentives. This blog explores the nuances of ACT 319, offering insight into its importance for property taxes and land conservation efforts in Pennsylvania.

The primary goal of ACT 319 is to support and promote the preservation of farmland, forest land, and open spaces in Pennsylvania. By providing tax relief to landowners who commit to keeping their land undeveloped and used for agricultural, open space, or forestry purposes, the state aims to discourage urban sprawl and maintain the rural character and environmental health of its regions.

ACT 319 addresses the challenge of rising property taxes, which can pressure landowners into selling or developing their land for commercial or residential use. By allowing land to be assessed based on its use rather than its potential development value, ACT 319 significantly reduces the property tax burden for eligible landowners, making it financially viable for them to maintain their land's designated use.

ACT 319 encompasses three categories of land: agricultural use, agricultural reserve, and forest reserve. Agricultural use includes land actively used for farming, ranching, or dairying. Agricultural reserve refers to non-commercial open space land available for public recreation or enjoyment. Forest reserve consists of wooded land capable of producing timber or other wood products.

For land to be eligible for ACT 319 benefits, it must meet specific size and use requirements. Generally, a minimum of ten acres is required, though smaller parcels may qualify if they generate a minimum annual agricultural income. Landowners must apply for the program through their county assessment office and commit to maintaining their land's qualifying use for seven years, with penalties for early withdrawal or non-compliant use.

The most tangible benefit of ACT 319 is the potential for significant property tax savings. Because taxes are assessed based on the land's current use value rather than its full market value, enrolled properties often see a substantial reduction in tax liability. This can make a considerable difference for farmers, foresters, and land conservationists, helping to sustain their operations and conservation efforts.

By reducing financial pressures on landowners to sell or develop their land, ACT 319 helps to preserve the agricultural heritage and rural character of Pennsylvania. This support is vital for the state's farming and forestry sectors and contributes to environmental conservation, biodiversity, and the beauty of Pennsylvania's landscapes.

Landowners considering enrolling in ACT 319 should understand the commitment they are making. The program requires a long-term dedication to maintaining the land's qualifying use, and penalties apply for non-compliance or withdrawal. Before enrolling, landowners should carefully consider their future plans for the property and the potential implications of this commitment.

Enrolled properties face restrictions on subdivision and development. Transferring or selling portions of the land may result in rollback taxes, calculated as the difference between the taxes paid under ACT 319 and the taxes that would have been paid based on the land's market value, plus interest. These restrictions are essential to consider for estate planning and future land use decisions.

Due to the complexities of ACT 319, prospective and current landowners can benefit from consulting with legal and real estate professionals who specialize in agricultural and conservation land use. These experts can provide guidance on eligibility, the application process, and long-term planning for ACT 319 properties.

Landowners enrolled in ACT 319 must adhere to program requirements, including submitting annual reports and notifying the county of any changes in land use. Maintaining compliance ensures continued eligibility for the program's tax benefits and supports the broader goals of land conservation in Pennsylvania.

ACT 319 plays a crucial role in preserving Pennsylvania's agricultural lands, forests, and open spaces, offering significant benefits for landowners committed to these purposes. By understanding and navigating the complexities of this program, landowners can take advantage of tax incentives to protect and sustain the natural and rural landscapes that define much of the Keystone State.

For those considering purchasing or currently owning land in Pennsylvania that may be eligible for ACT 319, reaching out to experienced professionals like Rebecca Francis and The Rebecca Francis Team can provide valuable insights and support. Specializing in properties throughout Pennsylvania, including those eligible for conservation and agricultural programs, Rebecca and her team can guide you through the process of maximizing the benefits of ACT 319 for your land. Contact Rebecca Francis and The Rebecca Francis Team today to explore how ACT 319 can play a part in your property ownership and conservation goals in Pennsylvania.