Current Use Tax Assessment
If the sale involves property which is under a current use tax assessment with the county (i.e., reduced taxes in consideration of certain promises regarding the ten year use restriction), both parties to the transaction should contact the Tax Assessor/Tax Commissioner regarding the implication this sale might have and whether or not it triggers recapture of past taxes which would be a lien against the property and the seller for breach.
Most counties will not impose the penalty for breach if the buyer signs up for new ten year Current Use Tax Assessment. However, the buyer must understand the consequences of what can or cannot be done with the property and when. Compliance with the new assessment must be made in a timely manner on the county’s schedule.