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(q) Breach of dedication; deferred or rollback taxes; penalties and interest. <br />(1) A deferred or rollback tax shall be imposed on the owner of commercial <br />aaricultural use dedicated lands upon anv of the following <br />(A) Failure of the owner to observe anv restriction, condition, or provision on <br />the use of the land; or <br />(B) If the dedicated property or any portion thereof is sold by way of a <br />conveyance which is subject to conveyance tax under the terms of <br />chapter 247, Hawaii Revised Statutes, unless a notarized affidavit is <br />signed by the owner stating that the land will continue to be subject to <br />the full requirements of the dedication including_anv penalties for <br />violation. The director shall record the notarized affidavit with the bureau <br />of conve~nces. <br />(2) The deferred or rollback tax shall commence from the date the failure to observe <br />the restriction, condition or provision, or the property's conveyance retroactive to <br />the date the assessment was made pursuant to subsection (F) of this section but <br />for not more than ten years. <br />A) Failure to observe the restrictions on the use means failure for a period of <br />six consecutive months to use the land in the manner requested in the <br />petition or the overt act of changing the use for any period; provided that <br />the petition by the owner for a change in use as provided in subsection <br />(f), and the owner's subsequent change in use of such dedicated lands, <br />shall not be deemed to constitute a failure of the owner to observe the <br />restrictions on the use. <br />B) Anv other provisions to the contrary notwithstanding,_when aportion of <br />the dedicated land is subsequently applied to a use other than the use set <br />forth in the original petition, only such portion as is withdrawn from the <br />dedicated use and applied to a use other than the commercial agricultural <br />category shall be taxed as provided by this subsection. <br />{~ Calculating deferred or rollback taxes. <br />(A) The deferred or rollback tax shall be based on the difference between the <br />assessed market value at highest and best use and the commercial <br />agricultural use of the land at the rate applicable for the respective years. <br />(B) All differences in the amount of taxes that were paid and those that <br />would have been due from assessment in the higher use shall be due and <br />payable with a ten percent penalty. <br />16 <br />