When farmland enrolled in New York's agricultural assessment program is converted to non-agricultural use, the rollback tax recaptures the difference between the reduced agricultural assessment and full market assessment for the prior five years, plus interest. This can cost $10,000 - $100,000+. If the buyer plans to continue farming, no rollback is triggered. If development is planned, who pays the rollback must be addressed in the contract.
From the seller playbook: Agricultural Property and Farmland Sales in New York
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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