David owns 80 acres of forested land in Grafton County, New Hampshire enrolled in the Current Use Taxation Program under RSA Chapter 79-A. He is considering selling the land to a developer who plans to subdivide it. Which financing-related consequence should David's real estate agent disclose to the prospective buyer?
Correct Answer
B) Removing the land from Current Use will trigger a land use change tax of 10% of the full market value of the land
Under RSA Chapter 79-A, when land enrolled in New Hampshire's Current Use Taxation Program is removed from the program (for example, when sold for development or subdivided), a land use change tax is triggered. This tax is equal to 10% of the full market value of the land at the time of the change. This is a significant additional cost that buyers must understand before purchasing Current Use land for development purposes.
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Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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