BIL 317 Draft 02 2012-2014 - Laserfiche WebLink

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(2) The deferred or rollback tax shall commence from the date of the failure to observe the restriction, condition or provision, or the property's conveyance retroactive to the date the assessment was made pursuant to paragraph (3)(C) of this subsection, but for not more than three years. (A) Failure to observe the restrictions on the use means failure for a period of six consecutive months to use the land in the manner requested in the petition or the overt act of changing the use for any period; provided that the petition by the owner for a change in use as provided in subsection (f), and the owner's subsequent change in use of such dedicated lands, shall not be deemed to constitute a failure of the owner to observe the restrictions on the use. (B) Any other provisions to the contrary notwithstanding, when a portion of the dedicated land is subsequently applied to a use other than the use set forth in the original petition, only such portion as is withdrawn from the dedicated use and applied to a use other than the short term commercial agricultural category shall be taxed as provided by this subsection. (3) Calculating deferred or rollback taxes. (A) The deferred or rollback tax shall be based on the difference between the assessed market value at highest and best use and the short term commercial agricultural use of the land at the rate applicable for the respective years. (B) All differences in the amount of taxes that were paid and those that would have been due from assessment in the higher use shall be due and payable with a ten percent penalty. (C) If the owner of dedicated land breaches a condition of the dedication before its completion, deferred or rollback taxes shall be imposed on the subject parcel from the end of the tax year in which the breach occurs retroactive to the date of dedication. (D) In any case in which deferred or rollback taxes are imposed after successful completion of an agricultural dedication period, the deferred or rollback taxes shall be retroactive only to the end of the completed dedication period, and shall not be imposed for an time ime covered by a successfully completed agricultural dedication period. (4) The additional taxes and penalties due and owing shall be a paramount lien upon the property as provided for by this chapter. (h) The director may cancel a dedication without rollback taxes or penalties in the event of any of the following: (1) A recognized natural disaster; (2) The land can no longer be used for the dedicated agricultural use; or (3) The death or severe disability of the principal farmer such that the farm operation cannot continue; provided, however, that a corporation or a partnership shall not qualify as a principal farmer and shall not be exempt from rollback taxes or penalties under this subsection."