A3B-LancMt*r Farming, Saturday, May 23, 1992 Economist Explains Preferential Farm Tax Assessments MANHEIM (Lancaster Co.) County-wide reassessments have triggered dramatic increases in the number of acres of Pennsylvania farmland enrolled in preferential tax programs, according to John Becker, an associate professor of agricultural economics at Penn State. These programs can reduce property taxes by as much as 60 percent, Becker told the Ag Issues Forum last week, at Kreider’s Restaurant in Manheim. The For um is a group of fanners and agri business leaders who meet month ly to discuss issues facing Pen nsylvania’s farm community. Enrollment in the preferential tax programs increased from just over 500,000 acres in 1981 to more than 3.7 million acres as of April 1, 1991, according to Beck er. Farmers from 42 of Pennsylva nia’s 67 counties are enrolled. Under Pennsylvania Act 319, the “Clean and Green” law of 1974, farmers can ask county gov ernments to value their land as farmland for the purpose of com puting real estate taxes. Another law. Act SIS, has similar provi sions. Most farmers who apply for this kind of tax relief are in areas where real estate prices are inflated by development pres sures. A com Held next to a hous Joseph C. Petfer Estate Counselor Jeffrey C. Kltzmlller Estate Counselor • Business • Estate Insurance Planning Si Financial Services V) Post Office Box 4154 2595 Interstate Drive Harrisburg. PA 17111 (717) 657-2263 (717) 273-4001 Need Your Farm Buildings Painted? Let us give you a price! Write: Daniel’s Painting 637-A Georgetown Rd. Ronks, PA 17572 (or leave message) (717) 687-8262 Spray on and Brush in Painting ing development, for example, has a higher market value than a field that is surrounded by other farmland. Market value is often a moot issue until a county elects to reas sess its taxable property. In Lan caster County, for example, farm land values are under intense pres sure from population growth and a relatively active real estate mark et. However, there has been no county-wide tax reassessment for decades, so farmland valuations for tax purposes are fairly low. In fact, only two Lancaster County farmers are enrolled under either Act 319 or 515, for a total of 24 acres. Participation would increase, as it has in other counties, with a county-wide reassessment. Becker told the group that under Act 319, the program most commonly used, farmers can qual ify for lower tax assessments on three categories of land - that which is used for agricultural pro duction, in an agricultural pre serve, or in a fores* preserve. Land in agricultural prdduStion must have been in use for .three years before it can be considered; it must consist of a parcel that is at least 10 acres in size; or, if it is smaller, it must produce at least $2,000 in annual sales. Ag preserve lands are a mini mum of 10 acres in size, do not The Big Jim® system is a proven alternative to bottom unloading. Big Jim offers high-capacity, reli- ability, long life, low main tenance and good-quality See These Dealers For Details Now... PENNSYLVANIA ***** ™ oop Cochranvllle, PA 19335 ERB 9t HENRY 215-593-6731 EQUIPMENT INC. New Berllnvllle, PA 1954 S 215-367-2169 LAPP'S BARN EQUIPMENT SALES * SERVICE Gap, PA 17527 717-442-8X34 SOLLENBERGER SOMERSET BARN SILOS CORP. EQUIPMENT Chambaraburg, PA 17201 Someraet, PA 15501 717-264-9588 814-445-5555 VfaeFor Kg Jim! Unloaders for stool silos. STAR SILOS Myeratown, PA 17087 717-886-5708 JAMES L. HOSTETTBR McVaylown, PA 17051 717-889-6386 generate any income, and must be open to the public. Forest preserves must be able to produce salable timber products and must be at least 10 acres in size, unless they are part of a farm, in which case there is no minimum acreage requirement Farmers who enroll in preferen- Fresh Sumnertime Dairy Savings! haylage. New suspension system eliminates need for tripod and external support cables. Sm your Jamasway Big Jim® Daalar soon. PRINGLES FEED MARYLAND STORE, INC. Greenville, PA 16125 GLADHOL TRACTOR MART 412*588-7950 Frederick, MD 21701 301-663-6060 ROVENDALE AG & BARN EQUIPMENT Wataonlown, PA 17777 717-538-9564 OR 717-742-4226 GNEGT SURGE SERVICE Waahington, PA 15301 412-222-0444 HOOVER EQUIPMENT Tyrone, PA 16688 814-684-1777 tial tax programs can become ine ligible by changing to non-farm uses, or by selling off part or all of the property for non-agricultural uses. In those cases, the legislation has provisions that call for repay ment, with interest, of any tax monies that were saved by virtue of the preferential treatment. MD ft VA MILK PRODUCERS ASSOC. Fradarlck, MD 21701 301-663-6552 GEORGE COLEMAN Elmer, NJ 08318 609-358-8528
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