My colleague is correct. As with any charge, tax, or cost of closing, the payment of these taxes is negotiable, but often it is a Seller charge because the Seller has enjoyed the benefit of very low taxes for the past five years. Rollback taxes do not occur until the use of the property changes, so if the Buyer continues to use the property for agricultural purposes, there is no need to trigger payment of those taxes and the exemption just rolls forward! The new owner would need to immediately apply for the exemption after purchase. Rollback taxes can be triggered in whole or in part, so depending on anticipated use, it may be wise to get professional advice as to the strategy for handling these taxes.
Jan 6, 2014