Thread: Farm Island
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Old 07-29-2019, 03:44 PM   #66
hemlock
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Default current use

Quote:
Originally Posted by chasedawg View Post
Good thought....The potential buyer is going to continue with the "current use" status. From what I understand it will be a tree farm to gain "current use" status. Many trees will be removed especially the umbrella trees that have been there for 90 years.
The way current use works is that the owner gets a reduced tax rate for keeping the property in its current use as farmland ,woodland, unproductive land etc. Once the property is developed it is considered a change in use and a tax penalty is applied in the amount of 10 percent of the ad valorem value of the land. So 12 house lots at 300k each equals a penalty paid to Tuftonboro of 360000. Current use is only applicable if the property is at least 10 acres in size. Subdivision below that size triggers the penalty.

The only way to avoid the penalty is to not develop the property
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