How it Works
To create a dedicated funding source for open space preservation and park development and stewardship, municipalities are authorized to levy taxes or issue bonds specifically dedicated to conserving and maintaining open spaces. Pennsylvania Acts 442 and 153 provide the regulations and framework for municipalities to conserve open space through funding mechanisms approved by residents through ballot referendums.
PA Act 442 (1967), "Preserving Land for Open Air Spaces," provide for the state and counties to acquire land to preserve open space and natural resources, such as forests, farmland, and water supplies. PA Act 153 (1996), "Open Space Lands, Acquisition and Preservation Act" amended and broadened the reach of PA Act 442 to allow municipalities to establish funding mechanisms dedicated explicitly to acquiring land and easements to preserve open space with agricultural, recreational, natural, scenic, historic, or cultural value.
This legislation enables municipalities to enact the following funding mechanisms for open space acquisition:
- A dedicated earned income tax
- A dedicated property tax
- A combination of a dedicated earned income tax and property tax
- Borrowing — issuing bonds to finance capital projects
Municipalities must have voter approval through a referendum during a primary or general election if the proposed funding exceeds tax limits established in PA Act 511 of 1965, the Local Tax Enabling Act, or if a bond referendum would cause a municipality to exceed debt limits set by statue in PA Title 53, "Municipalities Generally", specifically in Part VII — Taxation and Fiscal Affairs. PA Title 53 specifically exempts all "electoral debt" from municipal statutory debt limits. Local governments may also issue bonds to fund open space acquisitions without voter approval, though a referendum can also help by ensuring the tax or bond revenue is dedicated to specific conservation purposes and future financing needs. Counties are not permitted to levy taxes under Act 442.
Act 442, as amended, specifies how funds can be raised, managed, and used to ensure that the open space preserved through the program achieves particular public benefits. These benefits include, but are not limited to, the protection or conservation of:
- Water resources, watersheds, and groundwater supply
- Forests and land being used to produce timber crops
- Farmland
- Existing or planned park, recreation or conservation sites
- Natural resources (soils, streams, floodplains, steep slopes, wetlands)
- Scenic areas/views
- Sites of historical, geological, or botanical interest
In 2013, Act 442 was amended as Act 115 and expressly permitted funds to be used for the following purposes:
- To retire the debt incurred from purchasing interests in real property or making additional acquisitions to secure open space benefits.
- For transactional fees incidental to acquisitions made in accordance with this act, including, but not limited to, appraisal costs, legal services, title searches, document preparation, title insurance, closing fees, and survey costs.
- For expenses necessary to prepare the resource, recreation, or land use plan.
Additionally, Act 115 (2013) authorized municipalities to allocate up to 25% of annual or accumulated open space fund revenues for planning, designing, engineering, and maintaining properties for open space benefits. The 2022 Amendment of Act 115 clarified that 25% of the funds can be used on any open space property, not just those acquired with municipal open space funds, however, such uses are secondary to meeting debt service obligations or acquisition fees. It is important to note that the bond does not need to be fully paid off to use funds for maintenance — municipalities must simply be making the agreed-upon payments. Therefore, borrowing plans should take into account the intention to reserve up to 25% of revenues for ongoing stewardship and maintenance. Funds initially designated for maintenance may also be redirected toward strategic property acquisitions that advance open space goals.
Municipalities are using their open space funds for the following innovative and flexible uses:
- Salary of a preserve manager
- Demolition and grading
- Establishment of trails
- Brownfield remediation
- Development of parking areas
- Contractor for stewardship maintenance services
Although there is flexibility in the use of open space funds, all uses must be tied to an open space benefit and must be used on properties that are open to the public. The following examples do not further an open space benefit:
- Activities that are unrelated to conservation or recreation
- Development of municipal public works facilities
- General municipal operations
- Stormwater retention for off-site development
- Non-environmental infrastructure, like road maintenance, that is unrelated to the open space benefit
- Private event space or private competitions that exclude other open space users
Get Started
The Commonwealth of Pennsylvania's Title 53 specifies the process a municipality must go through to obtain voter approval for levying an additional tax or borrowing for open space purposes. Municipalities must pass an ordinance requiring a public vote before implementing an additional tax for open space. The new tax millage and/or proposed bond issuance can only be enacted if a majority of voters approve it in the referendum.
The question to be placed on the ballot shall be framed in the following form: Do you favor the imposition of a (describe tax in millage or earned income tax rate) by (local government unit) to be used to (purpose)?
The municipality must clearly state its open space priorities, how the funds will be allocated, and the benefits it anticipates achieving. Municipalities tailor their referendum ordinances to meet local needs, aligning their open space programs with the goals and priorities outlined in their comprehensive plan and/or recreation, parks, and open space plan. Although not necessary, an official map may also identify parcels and areas for future protection or conservation.
Examples
Open Space Referenda are widely used and have proven to be a successful funding tool for achieving open space preservation goals and benefits throughout Chester County, the Commonwealth, and the Delaware Valley region.
As of the end of 2024, 38 of the 73 municipalities in Chester County have voted to either issue a bond or dedicate tax revenue to open space preservation. As shown in the County's Inventory of Funding Programs webpage, as of 2024:
- 27 municipalities fund their programs through an earned income tax only
- 8 municipalities fund their programs through property taxes only
- 2 municipalities have both a tax and a bond
- 1 municipality has an open space bond only
These municipalities use open space funds to acquire lands that help achieve open space goals and benefits such as restoring habitats and wetlands, improving watersheds and water quality, mitigating floods, preserving scenic viewsheds, and enhancing urban green spaces. They also support planning for open space acquisition, community engagement, and environmental education. Many also allocate a portion of the funds for designing, engineering, and stewardship of their open space properties.
Uwchlan Township
Passed in 2024, the Uwchlan Township open space program raises funds through an earned income tax for acquiring, protecting, and conserving open space. This includes acquiring agricultural conservation easements and protecting woodlands, stream corridors, natural habitats, and lands for recreation or historic resources. The program also funds costs associated with acquisitions, including appraisals, engineering and surveying, and closing costs. It allocates 25% of the funds to manage and maintain the acquired lands.
East Whiteland Township
East Whiteland Township passed an Open Space Tax Referendum in 2024 to protect natural resources and environmentally sensitive areas, maintain wildlife habitats, and provide recreational lands, using both a property and income tax millage. These funds will help pay off debt incurred from purchasing land or property rights for conservation, open space, and public recreation purposes.
Honey Brook Township Township
In 2005, Honey Brook Township residents approved a 0.5% earned income tax to fund open space preservation to protect farmland, agricultural heritage, and natural resources. The Township instituted a Land Preservation Committee to administer the program.
Approximately 70% of the Township land is farmland. About 35% of it (4,710 acres) has been preserved through the program in cooperation with state, county, and other agricultural programs. The City of Wilmington also provided funds to purchase easements to protect the headwaters of its drinking water supply.
The program generates an annual average of $840,000. It is planned to wind down in 2032, at which time the program is expected to have spent about $60 million towards open space preservation, with $20 million coming from the Township.
West Pikeland Township
The West Pikeland Board of Supervisors formed the West Pikeland Land Trust (WPLT) in 1999 to encourage preserving open space and holding easements in trust. WPLT preserves open space through partnerships, mapping, stewardship plans, educational events, and securing funding via their Open Space Preservation tax referendum, passed in 2007. The WPLT assesses opportunities, coordinates transactions, and develops grant requests. Efforts include resident outreach, expanding volunteers, and educational programs. Open Space funds are for land purchases, while WPLT relies on private donations for other initiatives, such as stewardship, the salary of an open space employee, and contractor services for open space and trail maintenance. Seventy-five percent (75%) of the open space fund is for acquisition and easements, and 25% is for maintenance and development.