Agenda - 06-03-1991 - Laserfiche WebLink

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n by a landowner would be considered as an unusual occurrence and would be in the sole discretion of the Board of Commissioners. To qualify for re- purchase, the original purchase must have occurred at least 25 years before the date of the re- purchase request. In addition, the development rights must have been purchased by and not donated to the County. Appraisals necessary to establish market and agricultural use values would be the responsibility of the landowner as well as all expenses associated with closing. 15. How would selling development rights affect the landowner's standing in the Preferential Assessment /Deferred Taxation Program? If the property is already enrolled in the Preferential Assessment /Deferred Taxation Program, selling the development rights will not affect the landowner's standing in the program. Neither would it change the tax assessment the landowner pays under that program, since he /she is already being taxed on what the State considers to be the "current use" or agricultural value of the property. If the landowner is not now in the program, selling the development rights would not change his /her ability to enter. If a landowner sold the development rights on his /her property and elected to leave the Preferential Assessment /Deferred Taxation Program, caution should be observed. Since the tax penalty for leaving the program is based on the current year taxes plus the three prior years, the landowner would wart to wait at least four years. In so doing, any penalty would be based on the market value of the property less its development rights and should be equivalent to the use value. 16. what taxes would a landowner have to pay on the money he /she received for the development rights? The sale of a landowner's development rights would be viewed as a normal capital gains transaction. However, arrangements could be made to spread the payments over time, thus reducing the impact of the capital gains tax. Because of its ability to accept gifts, grants, and bequests, the Board of Commissioners could also provide the opportunity for a landowner to tailor the sale to his /her specific tax situation. 17. If a landowner sold the development rights, could the land still be taken by eminent domain (condemnation) for something like a reservoir or landfill site? Yes. However, as part of its agricultural preservation efforts, Orange County could adopt an ordinance under G.S. 106 -740 which provided for a public hearing on the proposed condemnation and the opportunity to submit written findings and recommendations to the decision - making body. Page - 16