A buyer's agent in New Hampshire is representing clients who are interested in purchasing a 120-acre parcel that is currently enrolled in the Current Use Taxation Program. The listing agent mentions that the current annual property tax bill is only $800. Which of the following is the most important disclosure the buyer's agent must communicate to her clients?

Correct Answer

B) If the buyers remove the land from Current Use for development, a land use change tax of 10% of full market value will be triggered under RSA 79-A.

Under RSA 79-A, land enrolled in New Hampshire's Current Use Taxation Program is assessed at its current use value (agricultural, forest, or open space) rather than full market value, resulting in significantly lower property taxes. However, when the land is removed from Current Use — such as when a buyer develops or subdivides it — a land use change tax of 10% of the full assessed market value is triggered under RSA 79-A:7. A buyer's agent has a fiduciary duty to disclose this significant financial consequence so clients can factor the land use change tax into their purchase and development cost analysis.