Roll-back taxes consist of the difference between the land use value assessment and the fair market value assessment for a period of up to six years plus simple interest per year on that sum. The roll-back tax is assessed against the person who changes the land to a non-qualifying use.
Property can be withdrawn from the land use program without penalty at any time; however, it will remain subject to possible roll-back taxes for up to six years if the use or acreage changes.
Real estate which is being taxed as land use will be subject to additional taxes known as roll-back taxes if:
- The landowner changes the use of the property to a non-qualifying use
- The landowner transfers or sells less than the minimum acreage required to qualify for land use taxation as agricultural or forest land. (If the remaining acreage is not enough to qualify, it is also subject to roll-back taxes and comes out of the program)
- Property can be withdrawn from the land use program without penalty at any time; however, it will remain subject to possible roll-back taxes for up to six years if the use or acreage changes.
- The roll-back tax occurs because the tax dollars saved under the land use program are only a deferment based on the use of the land
Taxes Past Due
The taxes on a parcel in the land use program must be paid in a timely manner. If on June 1 of any year, the taxes for the prior year are delinquent, the parcel must be removed from the program and taxed at the fair market value.