Subdividing Farmland? Don’t Let Clean & Green Catch You Off Guard!

Pennsylvania’s Clean and Green Law (Act 319) was enacted to preserve farmland and forestland by allowing qualifying properties to be taxed based on agricultural or timber use value rather than fair market value. While this preferential tax treatment can create substantial savings for landowners, subdividing enrolled property requires careful planning because mistakes can trigger significant roll-back taxes and penalties. 

Generally, qualifying property must fall within Agricultural Use, Agricultural Reserve, or Forest Reserve categories and typically exceed ten acres or be two or less.  Clean and Green is administered at the county level.  This makes local guidance critical for implementation as interpretations can vary. 

Before subdividing enrolled property, surveyors should take several important steps: 

• Obtain and review the Clean and Green contract and related deeds 

• Confirm what parcels are actually enrolled in the program 

• Request written guidance from the County Assessment Office regarding whether the proposed subdivision complies with program requirements 

• Confirm compliance before recording any deeds 

• Consult experienced legal and land-use professionals early in the process 

These steps matter because once deeds are recorded, opportunities to correct mistakes become extremely limited. 

If a subdivision violates Clean and Green requirements, the landowner may become responsible for roll-back taxes calculated as the difference between taxes paid under Clean and Green and taxes that would have been assessed at market value for up to seven years, plus six percent annual interest. Those costs can quickly rise into the tens of thousands of dollars. 

Importantly, not every subdivision creates a violation. The law permits: 

• Separations – subdivisions where both the newly created parcel and remaining land continue meeting Clean and Green requirements. Properly structured Separations generally avoid roll-back taxes. 

• Split-Offs – limited subdivisions, generally two acres or less that are permitted under specific statutory requirements but often trigger roll-back taxes on the subdivided acreage. 

Clean and Green rules are highly technical and liability may continue years after a subdivision occurs. Early planning and consultation with experienced legal, and land-use professionals is essential. Careful preparation can prevent costly mistakes and protect long-term tax benefits. 

For a more in-depth review of requirements and potential pit-falls, consider joining me November 11, 2026 at noon when I will be presenting a webinar on subdivision of property enrolled in Clean and Green. 

D. Robert Davidson, Esq., PLS 

MPL Law Firm 

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