Pennsylvania’s Clean and Green program can significantly affect the property-tax assessment of qualifying agricultural and forest land. That makes enrollment attractive, but buyers need to understand that the tax benefit comes with land-use rules and potential rollback taxes if the covenant is breached.

What Clean and Green does

Clean and Green is Pennsylvania’s preferential-assessment program for qualifying agricultural use, agricultural reserve, and forest reserve land. Instead of assessing enrolled land only on full fair-market development value, qualifying land is assessed under program use values.

Forest Reserve values are tied to county timber values and state-provided use values.

Enrollment stays important when property changes hands

A buyer should determine whether the parcel is enrolled, what acreage is enrolled, the use category, and whether any exclusions or prior changes exist.

Ask for current tax records and program documents instead of relying on the listing description alone.

A change in use can trigger rollback taxes

The Pennsylvania Department of Agriculture states that a breach of the covenant can result in seven years of rollback taxes plus 6% simple interest per year. The rollback is based on the difference between taxes paid under the program and what would have been paid without the preferential assessment.

That potential liability is why a buyer planning subdivision, commercial use, or major development should investigate before closing.

Do not assume every improvement breaks enrollment

Program rules include exceptions, acreage thresholds, and specific treatment of homesites and activities. The effect of a proposed use depends on the facts.

Before making a development plan around assumptions, discuss the parcel with the county assessment office and appropriate tax or legal professionals.

Verify with the county and state guidance

The official Pennsylvania Department of Agriculture Clean and Green page publishes current statewide information and use values. County assessment offices administer enrollment locally.

Official resource: Pennsylvania Department of Agriculture — Clean and Green.

Buyer checklist

• Enrollment confirmed with county
• Enrolled acreage and category reviewed
• Current taxes compared
• Intended future use discussed
• Potential rollback exposure investigated
• County assessment office contacted for parcel-specific questions

If you are shopping for larger acreage in Pennsylvania, Ken Hoffmaster, REALTOR® can help identify questions to investigate before an offer.

This article is general information, not legal, engineering, environmental, tax, or lending advice. Buyers should independently verify matters important to their intended use.