When the Use of Land Changes

The Farmland Assessment Act provides special treatment for land which is continued in active agricultural or horticultural use by permitting reduced assessments and reduced tax on such qualifying lands. In order to recapture some of the taxes which would have been paid had the land been taxed on the same basis as all other property, the Farmland Assessment Act provides for levy or rollback tax if the use of the land changes.

The liability for rollback taxes attaches to the land at the time a change in use of the land occurs, but not when a change in ownership takes place if the new owner continues to devote the land to agricultural or horticultural use in conformity with the requirements of the Act. Any land which changes from an eligible agricultural or horticultural use under the Farmland Assessment Act to some other non-farm use is subject to rollback taxes for the year in which the change takes place and for such of the two tax years immediately preceding, in which the land was valued, assessed and taxed under the Act.