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Lancaster County’s old world charm stems from the heritage of its Pennsylvania Dutch residents, a culture known for its horse and buggy
transportation, simplicity, and family-centered, religious way of life. The heritage of these Plain sect people goes back hundreds of years.
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Lancaster Farmland Trust
As we strive to promote good stewardship of the land and to protect the cultural heritage
that has made Lancaster County what it is today - we invite you to join us as we support
the Lancaster Farmland Trust in this most important effort. |
Farming Facts
- Lancaster County holds the distinction of being the most productive non-irrigated farming county in the United States.
- Lancaster County is ranked second in the U.S. with more than 58,000 acres of preserved farmland.
- More than 99% of Lancaster County farms are family owned.
The Trust works in partnership with landowners to preserve their farms and way of
life for future generations by placing a conservation easement on their property.
A conservation easement is a legally enforceable land preservation agreement between
a landowner and the Trust for the purposes of conservation. It restricts real estate
development, commercial and industrial uses, and certain other activities on a property
that are mutually agreed upon by the Trust and the property owner. The Trust customizes
each easement to the particular needs and future plans of each individual farm family.
In accepting the conservation easement, the Trust has a responsibility to monitor future
uses of the land to ensure compliance with the terms of the easement and to enforce the terms if a violation occurs.
As a private, non-profit organization, the Farmland Trust works with landowners who want to
permanently protect their farmland. By purchasing the development rights, Lancaster Farmland
Trust helps enforce development restrictions in order to preserve the farms and way of life for future generations.
| Does your new Home qualify for Rural Housing services?
Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas.
Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites,
including providing water and sewage facilities. |
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Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income
limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage
payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.
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| Farmstead Act :
While many are familiar with the Homestead Act for residential tax relief,
many have been asking lately about the Farmstead Act for Pa farms/farmettes of at least 10 acres. Here's some common questions: |
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Act 72 of 2004 FAQ
Q:What is Act 72?
Act 72 of 2004 is the Homeowner Tax Relief Act. Its goal is reduction in school district reliance on the real property tax, to be achieved by putting in place new funding options, including local personal or earned income taxes and funds derived from gaming. The reduction in property taxes is achieved by applying these new funds to the homestead and farmstead exclusions.
Q:Will every property owner receive tax relief?
This tax reform legislation only applies to residential property owners. A homestead must be a Pennsylvanian’s permanent primary residence on which the property taxes are paid. A farmstead exclusion provides property tax relief to farmers; it applies to buildings used for agricultural purposes on a farm that is at least 10 contiguous acres. The farmstead must also be the primary residence of its owner. Farmers can be eligible for both a homestead exclusion and a farmstead exclusion since each covers a different part of the property.
Q:What are homestead and farmstead exclusions?
The homestead and farmstead exclusions are the methods of property tax relief allowed by state law. An exclusion reduces the assessed value of the property, which leads to a lower property tax bill. For example, if the assessed value of a house is $60,000 and the exclusion is $20,000, the homeowner would only pay taxes on $40,000 of assessed value. The Pennsylvania Constitution allows an exclusion of up to 50% of the median assessed value of all homestead properties in the school district. The same exclusion applies to every homeowner in the district – which means that everyone receives the same dollar amount of tax relief.
Q:How do you receive a homestead or farmstead exclusion?
To receive a homestead or farmstead exclusion, a Pennsylvania resident must submit an application to the Property Assessment office. School districts are required to send an application to all owners of residential property in the district.
Q:When is the deadline to file an application?
Homestead exclusion applications are due by [March 1] of each year thereafter for properties not currently enrolled. In addition, school districts are required to mail notices each year to homeowners who have not yet qualified. Residents that acquire property in the school district after the March 1 deadline must wait until the following year to qualify for a homestead or farmstead exclusion. (Section 341)
Q:I am currently enrolled in the Clean and Green Program. Can I also qualify for the Homestead exclusion?
Yes, you can qualify for the homestead exclusion if the property is the primary residence of the homeowner.
Q:I own a property with less than 10 acres, but I still farm the land. Do I qualify for the farmstead exclusion?
No. Only properties with buildings used for agricultural purposes on a farm that is at least 10 contiguous acres and is the primary residence of the owner qualify for the farmstead exclusion.
Q:If I already filed a homestead application in the past, do I still need to file one now?
Yes. This is a new version of the homestead law. Lancaster County is requiring an application specifically for Act 72 enrollment in order to qualify for the homestead exclusion.
Q:What happens if the use of my property changes, or if I decide to rent out my property?
When the use of a property approved as a homestead or farmstead property changes so that the property no longer qualifies for the homestead or farmstead exclusion, property owners must notify the Property Assessment Office within 45 days of the change in use. If the use of your property changes and you are not sure if it still qualifies for the homestead or farmstead exclusion, you should contact the Property Assessment Office.
Q:What are the penalties if I file a false or fraudulent application or if I do not notify the Property Assessment
Office of a change in use of my property?
Any person who files an application which contains false information, or who does not notify the Property Assessment Office of a change in use which no longer qualifies as a homestead or farmstead property, will:
* Be required to pay the taxes which would have been due had they not been enrolled in the homestead or farmstead exclusion, plus interest
* Be required to pay a penalty equal to 10% of the unpaid taxes
* If convicted of filing a false application, be guilty of a misdemeanor of the third degree and be sentenced to pay a fine not exceeding $2500.
According to Act 72, the Property Assessment Office may select, randomly or otherwise, applications to review for false or fraudulent information.
Q:I currently own two properties - one in Florida, and one in Pennsylvania. I live in Florida during the
winter and I live in Pennsylvania during the summer. Does my house qualify for the homestead exclusion?
Your house in Pennsylvania only qualifies for the homestead exclusion if you do not claim your Florida residence as your primary residence and you do not receive any other homestead benefit from any County, Municipality, or State.
Q:I own two properties. I live in one and my parents live in the other. Do they both qualify?
Only the property you use as your primary residence qualifies for the homestead exclusion. The house your parents occupy does not qualify.
Q:I recently sold my house and purchased a new house that I use for my primary residence. I was enrolled in homestead for
the house I used to live in, so do I have to file a new homestead application?
Yes. You will have to file a new application for your new house by March 1 to enroll that property in the homestead exclusion. If you acquired the property after the March 1 deadline, you must wait until the following year to qualify for a homestead or farmstead exclusion.
Q:My homestead application was denied. Is there anything I can do about it?
You have 40 days from the mailing date on the letter stating that you were denied enrollment into the homestead exclusion to file an appeal with the Property Assessment Office. You will need to prove that the property is used as your primary residence and you receive no other homestead exclusions from any other jurisdiction in order to be allowed for enrollment into the homestead program.
Q:I have been accepted into the homestead program. When will I see my tax reduction?
You will only see a tax reduction if your school district has decided to participate in the program. The school district must do one of the following to qualify for participation:
*Authorize the levy of an additional 0.1% local Earned Income Tax (EIT). The revenue from the additional local EIT must be used to reduce local property taxes.
*Propose a ballot question for the 2005 municipal election to ask voters whether they want to reduce property taxes by shifting towards a local income tax.
The July 1, 2006 school tax bill is the most likely timeline for property owners to expect to see the Homestead program to go into effect.
Q:It is past the October 15th mailing date for applications and I have not received my application. How do I get one?
You can download an application from our website. In order to open this application, you will need to have Adobe Acrobat installed on your computer. You can also call your school district and request that an application be mailed to you.
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