Pennsylvania Schedule AU -- Agricultural Use Exemptions

Schedule AU -- Agricultural Use Exemptions
Schedule AU - Agricultural Use Exemptions (REV-1197)
(EX) MOD 09-19 (FI)

REV-1197
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SCHEDULE AU
AGRICULTURAL USE
EXEMPTIONS

Bureau of IndIvIdual Taxes
Po Box 280601
HarrIsBurg, Pa 17128-0601

File Number:

Estate of:
This schedule may be used only by estates of decedents dying on or after July 1, 2012.

Use this schedule to report a farm interest for which the estate claims an exemption from inheritance tax under 72 P.S. § 9111(s) or (s.1).
Attach the following information:
• Written statement explaining in detail how the real estate qualifies for the claimed exemption.
• Copy of the county assessment card.
• Copy of the deed.

V

CHOOSE EXEMPTION TYPE:
Business of Agriculture Exemption 72 P.S. § 9111(s)
For Business of Agriculture Exemption, select the qualifying reasons below that apply and complete all Sections on the form.
Check all that apply: If you have not checked all of the ovals, you may not qualify for the Business of Agriculture Exemption.

The parcel is being reported on a timely filed return. (See 72 P.S. § 9166)
The parcel generates a gross income of at least $2,000 annually.
The parcel is not being leased to a non-qualifying third party.
Farmland Other Exemption 72 P.S. § 9111(s.1)
For Farmland Other Exemption, select the category of exemption below and complete Section I only.
Select the appropriate category of exemption. (For definitions of each category see instructions.)

Agricultural Commodity
Agricultural Conservation Easement
Agricultural Reserve
Agricultural Use Property
Forest Reserve

SECTION I

PROPERTY INFORMATION – ONLY ONE PARCEL PER FORM

Parcel Identification Number:

Physical Location or Street Address:

County

City

%

Percentage of land to be exempted:
Date of death value of the land:

SECTION II

State

$

ZIP Code

%

Percentage of structures to be exempted:
Date of death value of structures:

$

STRUCTURES Describe each structure that is being included as part of the Business of Agriculture Exemption.

Structure Type

Qualifying Description

Important: Structures affixed to real estate that do not qualify for the exemption must be valued and reported on Schedule A, F or G of the Inheritance
Tax Return, as appropriate.

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REV-1197 (EX) MOD 09-19

SECTION III

CERTIFYING OWNER(S)/TRANSFEREE(S) INFORMATION (Business of Agriculture Exemption)

To maintain the business of agriculture exemption, each owner for whom the exemption was claimed is required to certify to the department that the real
estate still qualifies for the exemption for a period of seven years beyond the decedent’s date of death. If, during the seven-year post-death period, the
real estate ceases to be used in the business of agriculture at any point, or does not generate a minimum of $2,000 of gross income in any year, the
owner(s) must notify the department within 30 days of such occurrence and will be liable for inheritance tax in the amount that would have been paid on
the fair market value of the real estate as of the date of the decedent’s death, plus interest. The department will supply the owner(s) with the annual
certification form each year of the certification period.
Provide the name and mailing address of all transferees of the real estate listed in Section I. (attach additional sheets if necessary).

OWNER NAME

RELATIONSHIP TO DECEDENT

MAILING ADDRESS
STATE

ZIP CODE

CITY

TELEPHONE NUMBER

RELATIONSHIP TO DECEDENT

STATE

ZIP CODE

RELATIONSHIP TO DECEDENT

STATE

ZIP CODE

TELEPHONE NUMBER

RELATIONSHIP TO DECEDENT

MAILING ADDRESS

OWNER NAME

RELATIONSHIP TO DECEDENT

MAILING ADDRESS

CITY

STATE

ZIP CODE

CITY

TELEPHONE NUMBER

STATE

ZIP CODE

TELEPHONE NUMBER

RELATIONSHIP TO DECEDENT

MAILING ADDRESS

OWNER NAME

RELATIONSHIP TO DECEDENT

MAILING ADDRESS

CITY

STATE

ZIP CODE

CITY

TELEPHONE NUMBER

STATE

ZIP CODE

TELEPHONE NUMBER

RELATIONSHIP TO DECEDENT

MAILING ADDRESS

OWNER NAME

RELATIONSHIP TO DECEDENT

MAILING ADDRESS

CITY

STATE

TELEPHONE NUMBER

Reset Entire Form

OWNER NAME

CITY

TELEPHONE NUMBER

OWNER NAME

ZIP CODE

MAILING ADDRESS

CITY

OWNER NAME

STATE

TELEPHONE NUMBER

MAILING ADDRESS

OWNER NAME

RELATIONSHIP TO DECEDENT

MAILING ADDRESS

CITY

OWNER NAME

OWNER NAME

ZIP CODE

CITY

STATE

ZIP CODE

TELEPHONE NUMBER

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Pennsylvania Department of Revenue

Instructions for REV-1197 Schedule AU
rev-1197 In (ex) 09-19

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Use REV-1197 Schedule AU to claim an exemption from
inheritance tax for real estate pursuant to either the
business of agriculture exemption or the farmland-other
exemption.

FORM INSTRUCTIONS
Estate of
Enter the complete name of the estate as shown on REV1500, Pennsylvania Inheritance Tax Return.
File Number
Enter the file number of the estate assigned by the register
of wills as shown on REV-1500, Pennsylvania Inheritance
Tax Return.
NOTE: In addition to the written statement, you must
submit a copy of the county assessment card, deed,
a statement of the real estate’s fair market value, and any
appraisal for verification purposes, or an appraisal of the fair
market value of the residential property, farm outbuilding(s),
and agricultural use property.

GENERAL INSTRUCTIONS
IMPORTANT: This schedule is appropriate only for
estates of decedents dying on or after July 1, 2012.
IMPORTANT: Submit one Schedule AU for each
parcel of real estate for which the estate is claiming
an exemption.
Exemption Type
Check the oval next to the exemption being claimed. Select
only one exemption. Descriptions of the exemptions can be
found in the department’s Informational Notice - Inheritance
Tax 2012 - 01.
Attach a written statement explaining in detail how the real
estate qualifies for the claimed exemption. In addition, if the
estate is claiming an exemption for any structure affixed to
the real estate, identify the structure and explain in detail
how each structure qualifies for the claimed exemption.
Structures affixed to the real estate that do not qualify for an
exemption must be valued and reported on REV-1502,
Schedule A. Failure to provide this information may result in
a denial of the claimed exemption or a delay in processing
the return.
www.revenue.pa.gov
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agricultural use exemptions

Farmland Other categories definitions:
Agricultural Commodities – Any and all plant and animal
products, including Christmas trees produced in
Pennsylvania for commercial purposes.
Agricultural Conservation Easements – An interest in land,
less than fee simple, which interest representing the right to
prevent the development or improvement of a parcel for any
purpose other than agricultural production. The easement
may be granted by the owner of the fee simple to any third
party or the Commonwealth, to a county governing body, or
to a unit of local government. It shall be granted in perpetuity
as the equivalent of covenants running with the land. The
exercise or failure to exercise any right granted by the
easement shall not be deemed to be management or control
of activities at the site for purposes of enforcement of the
act of Oct. 18, 1988 (P.L. 756, No. 108), known as the
“Hazardous Sites Cleanup Act”.
Agricultural Reserves – Noncommercial open space lands
used for outdoor recreation or the enjoyment of scenic or
natural beauty and open to the public for such use, without
charge or fee, on a nondiscriminatory basis.
Agricultural Use Property – Land used for the purpose of
producing an agricultural commodity or devoted to and
meeting the requirements and qualifications for payments
or other compensation pursuant to a soil conservation
program under an agreement with an agency of the federal
government.
Forest Reserves – Land of 10 acres or more, that is stocked
by forest trees of any size and capable of producing timber
or other wood products.

LINE INSTRUCTIONS
PAGE 1
SECTION I
Property Information
Property Parcel Identification Number: Identify the parcel
of real estate for which the exemption is being
claimed and provide the requested identifying information.
Physical Location: Provide the street address, city and
county in which the parcel of real estate is located.
Percentage of Parcel Exempted: Report the percentage
and value of the land and structures, which the decedent
owned and for which the exemption is being claimed.
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Date of Death value under 72 P.S. § 9121: Provide the date
of death fair market value of the real estate, land and
structures.

If additional space is needed, include further details in the
written statement that should accompany this schedule.

IMPORTANT: If the real estate is disqualified from the
business of agriculture exemption at any point during
the seven year certification period, the recapture tax due is
based on the fair market value of the real estate, not the
preferred agricultural use value.

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SECTION II
Structures
If the estate is claiming the business of agriculture exemption,
structures used for the business of agriculture that are
affixed to the real estate may qualify for the exemption. If the
structure qualifies, identify the structure and explain in detail
how each structure qualifies for the exemption being claimed.

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REV-1197
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SECTION III
Owner Information
Provide the name, mailing address, phone number and
relationship to the decedent of all qualified transferees of the
real estate. The mailing address will be used by the
department to send an annual certification form to verify
compliance with the requirements of the business of
agriculture exemption.
CAUTION: Farm machinery and equipment owned by
the decedent are NOT exempt when claiming either
exemption and must be reported on REV-1508, Schedule E.

www.revenue.pa.gov
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