1Amending the act of January 19, 1968 (1967 P.L.992, No.442), 
2entitled, as amended, "An act authorizing the Commonwealth of 
3Pennsylvania and the local government units thereof to 
4preserve, acquire or hold land for open space uses," further 
5providing for definitions and for local taxing options.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Section 2 of the act of January 19, 1968 (1967 
9P.L.992, No.442), entitled, as amended, "An act authorizing the 
10Commonwealth of Pennsylvania and the local government units 
11thereof to preserve, acquire or hold land for open space uses," 
12is amended by adding a definition to read:

13Section 2. Definitions.--For the purpose of this act the
14following definitions shall apply:

15* * *

16(8) "Conservation easement." As defined in section 3 of the 
17act of June 22, 2001 (P.L.390, No.29), known as the 
18"Conservation and Preservation Easements Act."

1Section 2. Section 7.1(b) of the act, amended February 2, 
22006 (P.L.15, No.4), is amended to read:

3Section 7.1. Local Taxing Options.--* * *

4(b) (1) Any of the following categories of real property
5may be exempted from further millage increases:

6(i) Real property in which the open space property interests
7have been acquired by a local government unit in accordance with
8this act.

9(ii) Real property that is subject to an easement acquired 
10in accordance with the act of June 30, 1981 (P.L.128, No.43), 
11known as the "Agricultural Area Security Law."

12(iii) Real property from which TDRs have been transferred
13and retired by a local government unit without their development
14potential having occurred on other lands.

15(iv) Real property that is subject to a conservation 
16easement acquired under the act of June 22, 2001 (P.L.390, 
17No.29), known as the "Conservation and Preservation Easements 
18Act," by an eligible nonprofit entity, as defined in section 3 
19of the "Agricultural Area Security Law," if:

20(A) the land subject to the conservation easement is
21protected for the purpose of assuring its availability for
22agricultural use; and

23(B) the term of the conservation easement is perpetual.

24(2) The exemption from further millage increases authorized
25by clause (1) shall become effective only if the governing body
26of each taxing district that imposes a tax on the real property
27approves the exemption either by ordinance in the case of a
28county or municipal corporation or by resolution in the case of
29a school district.

30(3) The exemption from further millage increases for real

1property as provided for in this subsection shall be authorized
2only for real property qualifying for such exemption under the
3provisions of section 2(b)(1) of Article VIII of the
4Constitution of Pennsylvania.

5(4) If the governing body of each taxing district so
6resolves, the millage freeze authorized herein shall apply to
7all eligible real property, whether the real property met the
8criteria of this subsection prior to or subsequent to the date
9of the ordinances and resolution imposing the millage freeze.
10For prior acquisitions, the date on which the millage rate shall
11be frozen is the date that the last of the required ordinances
12or resolution becomes effective. For subsequent acquisitions,
13the date on which the millage rate shall be frozen is the date
14the local government unit completes the acquisition. The
15governing body of each taxing district shall give prompt notice
16to the appropriate tax collection agent of the exact amount of
17the millage, the date it was frozen and each parcel to which the
18freeze applies.

19(5) The exemptions granted under this act shall not be
20considered by the State Tax Equalization Board in deriving the
21market value of school district real property so as to reduce
22the subsidy to that school district or to increase the subsidy
23to any other school district.

24Section 3. This act shall take effect in 60 days.