Real Estate

Rollback Taxes?

Reason #5,683 why you need an EXPERIENCED buyer’s agent!!!

When purchasing land that you will use as a residence from a larger tract of land and where the seller has been taking the agricultural tax break, the land being purchased will be subject to what is known as rollback taxes. This amount is up to five years of the difference between what the taxes would have been at the non agricultural rate and the amount of the agricultural rate. As you can imagine, this amount can be HUGE! Just like anything else in a real estate contract, this CAN be negotiated… that is, IF you know it exists. The land you thought was a such a good deal may not be once you are hit with the rollback taxes.