Amends TCA Title 66; Section 67-4-409 and Title 67, Chapter 5, Part 10.

LIABILITY FOR ROLLBACK TAXES<br /> <br /> Present law establishes that a seller is liable for rollback taxes, unless otherwise provided by written contract, for the sale of agricultural, forest, or open space land if the sale will result in such property being disqualified as agricultural, forest, or open space land due to conversion to an ineligible use, or otherwise. However, if the buyer declares in writing at the time of sale an intention to continue the greenbelt classification but fails to file any form necessary to continue the classification within 90 days from the sale date, then the rollback taxes will become solely the responsibility of the buyer.<br /> <br /> This bill requires the seller to pay any rollback taxes unless otherwise provided by written contract, and to pay the rollback taxes in full at the time of closing.<br /> <br /> NOTIFICATION AND TAX SAVINGS CALCULATION<br /> <br /> Present law requires the appropriate assessor to compute the amount of taxes saved by the difference in present use value assessment and value assessment under state law relative to property taxes for each of the three preceding years for agricultural and forest land, and for the preceding five years for open space land. The assessor must notify the trustee that such amount is payable if certain conditions are met, including, but not limited to, such land ceasing to qualify as agricultural land, forest land, or open space land, or the owner requesting in writing that the classification as agricultural land, forest land, or open space land be withdrawn. This bill adds to present law by also requiring the assessor to notify the trustee if the land is sold.<br /> <br /> Present law provides that the amount of tax savings calculated will be the rollback taxes due as a result of disqualification or withdrawal of the land from classification as agricultural, forest, or open space land. This bill adds to the present law by also providing that the amount of tax savings calculated will be the rollback taxes due as a result of the sale of the land.<br /> <br /> ROLLBACK TAXES AS FIRST LIEN ON THE PROPERTY<br /> <br /> Present law provides that rollback taxes must be a first lien on the disqualified property in the same manner as other property taxes. This bill removes the requirement that rollback taxes be a first lien on the disqualified property in the same manner as other taxes.<br />