A developer in Massachusetts purchases land previously classified under Chapter 61B as recreational land and immediately begins constructing a commercial office building. Under Massachusetts law, who is primarily responsible for paying the roll-back tax triggered by this conversion?
Correct Answer
C) The developer who purchased and converted the land
Under MGL Chapter 61B, Section 10, when classified recreational land is converted to a non-qualifying use, the roll-back tax becomes a lien on the land and is the responsibility of the current owner at the time of conversion — in this case, the developer. Because the roll-back tax attaches as a lien on the property itself, the developer (as the new owner who triggered the conversion) is primarily liable. This is why buyers of Chapter 61A or 61B classified land must conduct careful due diligence before purchase.
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The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
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