12
(Continued From Page 11)
seems reasonably clear that
presently - much of the
agricultural land in the Com
monwealth is assessed at a value
less than its agricultural use
value. The amount of this
preference varies from county to
county. (2) It is also clear that
where the tax base would be
reduced from immediate im
plementation of agricultural use
value assessment (mainly the
Philadelphia suburban area) the
total effect is likely to be small.
Differential assessment options.
Differential asssessment of
farmland, as it is used in this
country, comes in many shapes
and sizes. It is often divided into
three general types. They ard
preferential assessment,
deferred taxation, and restrictive
agreements.. The term “dif
ferential assessment” denotes all
three types collectively.
Under the preferential
assessment approach, aldn
devoted to agricultural use is
assessed on the basis of its value
in agricultural use. Market
values reflecting potential uses,
such as housing subdivisions or
industrial sites, are given little
' 'S. .
; '***
%;4%
■«f * ; . -
V'>
$1
'"'W
don't panic
overpankum
Add PRINCEP herbicide to your AATREX spray. The
easy way to solve fall panicum problems in corn. Takes
care of most other annual broadleaf weeds and grasses,
too.
Saturday. April 21. 1973
The Farm Land Tax Issue
Opponents of preferential
assessment commonly raise
several objections. One is that
landowners are being given a
break in their taxes and little is
required of them. To qualify, they
usually have to keep the land in
agricultural use for the year in
question (or more accurately,
have it in agricultural use on the
assessment date and, perhaps,
for two or three years
preceding). Furthermore, it is
said that non-farmer speculators
succeed in getting their land
classified as farmland by con
ducting very minimal farming
operations on it. The laws then
benefit land speculators more
than they do the bona fide
farmers.
Under a deferred tax law,
eligible lands are assessed and
taxed on their value in
agricultural use, just as under
preferential assessment. But
when any land assessed under
this act passes into
nonagricultural uses, a “roll
back” tax is levied. This tax is
levied for the year in which the
land use changes and several
years immediately preceding. It
is equal to the amount of tax
which was saved, each year,
. -V;- r >
V* ri \
•-V fSj. *■
f v r
" -
' *>■ "t
, .A - S.
> **
y C ‘ *
- y
because of the special
agricultural assessment.
The effect of a deferred tax
provision is to remove some of
the financial incentive for an
indivdual who is holding land for
relatively near-future urban use
to apply for the differential
assessment. He will save little
money. The effect depends, in
substantial measure, on the
length of the deferred period . *
three-year ‘states having
.'majority oi
UIC states having
such tax provisions.
An additional advantage
claimed for the deferred tax is
that is provides additional
revenue at the precise time it is
needed for new schools, sewer
extensions, and other community
services.
Both preferential assessment
and the deferred tax leave the
taxing unit little choice. If the
land is in agricultural use,
usually it must be assessed on
this basis, at least if the owner
applies for the assessment. The
community may have decided
that the farm is in an area where
uurban growth should be en
couraged, but in most cases it has
no alternative to granting
financial benefits to those who
want to continue farming.
Several states including
Pennsylvania have met this
problem by legislation which
allows the county government
and the landowner to enter into a
voluntary agreement under
which the landowner agrees to
keep his land in agricultural or
open-space use for a period of
five or ten years (Act 515 as
amentle’dj. In return he is
granted assessment on that
basis.
Differential assessment and
the preservation of open space.
Differential assessment laws
H.M. STAUFFER
& SONS, INC.
Witmer
ROHRER’S MILL
R.D.I, Ronks
JE'MAR FARM
SUPPLYING,
lawn—Ph: 964-3444 WHITE OAK MILL
H. JApOBHOOBER R.D.4, Manheim
Intercourse, Pa.
HAROLD H. GOOD
Terre Hill
GRUBB SUPPLY CO.
Elizabethtown
have been passed in various
states for a variety of reasons,
but one of the more common
reasons is the suggestion that
these laws will provide for the
preservation of open space.
To evaluate these laws, there is
a need to look at several
E. SAUDER & SONS
R.D.I, East Earl
HERSHEYBROS.
Reinholds
STEVENS FEED MILL,
INC.
Stevens, Pa.
PARADISE SUPPLY
Paradise
questions. First, we must decide
what kinds of land use we are
trying to preserve. Then we need
to ask whether differential
assessment can produce the
results wanted because nearly
(Continued On Page 21)
VS FEEL
R.D.2, Peach Bottom
MOUNTVILLE
FEED SERVICE
R.D. 2, Columbia
DUTCHMAN FEED
MILLS. INC.
R.D.I, Stevens
*
tCE