Property Reassessment

September 10, 2008

More want to be Clean and Green, but many more out there eligible

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
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The owners of 1,120 parcels have signed up for the Clean and Green tax-break program since Luzerne County’s new assessed values started hitting the mail in May.

This number seems high because only 185 properties had been in the program before reassessment, but county officials note that another estimated 6,500 eligible parcels are still out there.

Oct. 15 is the final application deadline for property owners who want the tax break in 2009.

“A lot of people seem to be waiting, and I want to make sure everyone knows that we can’t accept applications after Oct. 15,” said Anne Marie Paddock, who oversees the program in the county assessor’s office.

Hanover Township property owner Darryl Tomko and others who own eligible parcels have complained that the county won’t announce formal assessment appeals decisions until around Oct. 31. Tomko said he wants to know if he will receive an appeal reduction so he can weigh the pros and cons.

Though county commissioners have urged the appeals board to announce formal appeal results earlier, the board is sticking to its plan, saying it does not have the additional staff and resources to issue notices before Oct. 31.

Paddock said a property’s previously released Clean and Green value would be lowered if the eligible property owner has a home on the property and receives a reduction at a formal appeal. That’s because the law requires the county to value the home and 1 acre on which it sits at market value, rather than the reduced agricultural value applied to vacant land, she said.

Under Clean and Green, land is valued for its worth as agriculture, woodland, pasture or open space – not its development value in the real estate market.

Properties of 10 or more acres are eligible, but Paddock stressed that smaller parcels may also be enrolled if the land generates at least $2,000 in income per year. Proof of income would be required for participation, she said.

Property owners who miss the deadline may apply by June 1 next year to receive a reduction in 2010, but county officials are hoping to sign up as many as possible this year so taxing bodies don’t receive a wave of tax breaks for 2010.

A significant addition of new enrollments next year might force taxing bodies to increase millage rates in 2010 to make up for the lost revenue, said county assessor’s office director Tony Alu. In comparison, the effect of the 1,120 tax breaks won’t be as noticeable because the revenue loss will be factored into the new post-reassessment millage rates, he said.

Tim Barr, of reassessment company 21st Century Appraisals Inc., said the program could help farmers, including some who recently expressed concerns about their survival at a recent county commissioners’ meeting.

All or some of the money saved through the tax break must be repaid if property owners decide to sell the land for development. That way, property owners can’t enjoy the break and then suddenly sell the land for a housing development.

But Barr said the payback would only apply to the most recent seven years. For example, a property owner who received a $2,000 annual tax break for 15 years would have to repay $14,000 plus 6-percent interest if the owner decided to develop.

“The savings for the first eight years – $16,000 – would not have to be paid back,” Barr said.

Program participants typically receive a two-third tax bill reduction for vacant land and one-third reduction for properties that contain a home, Barr said.

The program was designed to insulate open space and farmland from the threat of growing real estate markets, Barr said. He’s noticed that some reassessment meeting attendees have the impression that the program is a “handout.”

“It’s the law. If you use your property for agriculture or forest land, then you’re entitled to the discount, and people should take advantage of it,” Barr said.

Paddock said property owners may apply for Clean and Green and then later withdraw. However, she emphasized that the $50 processing fee is not refundable.

For more information

Three general categories of land qualify for the Clean and Green program:

• Agricultural use: It must be devoted to agriculture, including beekeeping, the growing of flowers and cultivation of grapes.

• Forest reserve: Land capable of producing at least 25-cubic-feet-per-acre of timber per year.

• Agricultural reserve: Undeveloped land that must be available to the public for outdoor recreation or enjoyment, including wetland. The owner may “reasonably” limit public access in order to prevent damage to the property or danger to individuals, such as prohibiting hunting, firearms, all-terrain vehicles and fishing.

For more information on the program, contact Anne Marie Paddock at 820-6331.

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