Tax Savings Through the Clean and Green Program
In Pennsylvania, the Clean and Green Program (officially the Farmland and Forest Land Assessment Act 319) allows property owners with at least 10 acres of qualifying agricultural, forest, or open space land to be taxed on its use value rather than its higher fair market value.
On average, enrollees see a 50% reduction in their property assessments. It serves as a massive property tax relief program for rural, agricultural, and forested landowners.
Quick Facts:
- Acreage Minimum: Generally, parcels must be at least 10 acres.Â
- Exception: Smaller tracts (under 10 acres) can qualify if they are in Agricultural Use and generate at least $2,000 in gross annual income directly from farming. [
- Categories: Land must fall into one of three uses: Agricultural Use, Agricultural Reserve (for public recreation/scenic enjoyment), or Forest Reserve (timber production).Â
The Exception (smaller tracts)
Landowners navigate the program for small parcels using these specific criteria and steps:
- Income Proof Required: Because the property is less than 10 contiguous acres, it cannot qualify under the general “Agricultural Reserve” or “Forest Reserve” categories. It must be classed as Agricultural Use. Landowners must show evidence of $2,000 or more in annual sales from commodities like produce, livestock, dairy, or crops.Â
- Three-Year History: The land must have been actively devoted to this agricultural use for the past three consecutive years before it can be enrolled.Â
- Subdivision Restrictions: When dividing land (such as selling or gifting a portion to an adult child), owners must be careful not to breach the rules. Parcels cannot be divided into lots under 10 acres unless they maintain this $2,000 agricultural income threshold. A landowner is also permitted to “split-off” a maximum of 10% of the enrolled property (or up to 10 acres, whichever is less) for residential use, though this requires paying rollback taxes on those split-off acres.Â
The Catch (Rollback Taxes)
Because this is a tax reduction meant for long-term land preservation, changing the use of the land or splitting/developing the property triggers severe rollback taxes. If the land falls out of compliance, landowners are forced to pay back the difference between the lower “clean and green” taxes and standard fair-market-value taxes for the preceding seven years, plus 6% interest.
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