SB 1824

When a parcel of land has been classified by the assessor of property as agricultural, forest, or open space land, present law provides that it is subsequently considered that its current use for agricultural or timber purposes, or as open space used for neither of these purposes, is its immediate most suitable economic use, and the assessment must be based upon its value in that current use, rather than on value for some other use. CONVEYANCE OR TRANSFER OF THE LAND Present law requires the appropriate assessor of property to compute the amount of taxes saved by the difference in the present use value assessment and the value assessment made under law relative to valuation, for each of the preceding three years for agricultural and forest land, and for the preceding five years for open space land. Such assessor of property must notify the trustee that such amount is payable, if certain criteria is met. One such criteria is that the land is conveyed or transferred an d the conveyance or transfer would render the status of the land exempt from property taxes. This bill removes that criteria requirement. ROLLBACK TAXES Present law provides that the amount of tax savings calculated as described above are the rollback taxes due as the result of disqualification or withdrawal of the land from classification as agricultural, forest, or open space land. Rollback taxes must be a first lien on the disqualified property in the same manner as other property taxes, and also be the personal responsibility of the current owner or seller of the land. This bill amends this provision to, instead, provide that such rollback taxes ar e the personal responsibility of only the owner of the land, not the seller. If any land classified as agricultural, forest, or open space land, or any portion thereof, is acquired by a bank, a savings and loan association, or a holder of a deed of trust or mortgage in satisfaction or partial satisfaction of a debt previously con tracted in good faith, present law prohibits such land, or any portion thereof, so acquired to be subject to rollback taxes assessed against or payable by the bank or savings and loan association. However, such land, or any portion thereof, is subject to r ollback taxes if the land is used for a non-green belt purpose or after such land is sold by the bank, savings and loan association, or holder of a deed of trust or mortgage. This bill removes the requirement for the land to be subject to such rollback t axes. SALE OF THE LAND If the sale of agricultural, forest, or open space land will result in such property being disqualified as agricultural, forest, or open space land due to conversion to an ineligible use or otherwise, present law requires the seller to be liable for roll back taxes, unless otherwise provided by written contract. If the buyer declares in writing at the time of sale an intention to continue the greenbelt classification but fails to file any form necessary to continue the classification within 90 days from th e sale date, the rollback taxes become the sole responsibility of the buyer. This bill removes the provisions in the above paragraph and, instead provides that the sale of agricultural, forest, or open space land will result in the property being disqualified as agricultural, forest, or open space land. A buyer of property class ified as agricultural, forest, or open space land must submit a new application to renew the property's classification as agricultural, forest, or open space land. There is no liability for rollback taxes resulting from the sale and subsequent disqualifi ca tion of property as agricultural, forest, or open space land, regardless of whether the greenbelt classification is renewed by the buyer. APPLICABILITY This bill applies to property sold, conveyed, or transferred on or after July 1, 2026.