Marcus owns a 200-acre farm in New Hampshire that is enrolled in the Current Use program. He sells 10 acres to a developer for construction of a commercial building, while retaining the remaining 190 acres in Current Use. The 10 acres sold have a full market value of $300,000 at the time of the change. Which of the following correctly describes the land use change tax consequence for the 10-acre parcel?
Correct Answer
C) A land use change tax of $30,000 is assessed based on 10% of the full market value of the 10 acres removed from Current Use
Under RSA Chapter 79-A, the land use change tax is triggered whenever any portion of enrolled land is removed from Current Use, regardless of how much acreage remains enrolled. The tax is calculated at 10% of the full market value of the land removed from the program at the time of the change. For the 10 acres with a full market value of $300,000, the land use change tax is 10% × $300,000 = $30,000. This tax is the obligation of the landowner (Marcus) as the party removing the land from Current Use.
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