SENATE BILL NO. 63
AN ACT TO AMEND CHAPTER 83 OF TITLE 9, DELAWARE CODE, RELATING TO ASSESSMENT AND TAXATION OF LAND DEVOTED TO AGRICULTURE USE.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Amend Section 8331B of Chapter 83, Title 9, Delaware Code, by adding thereto a new subparagraph to be designated as subparagraph (d) to read as follows :
(d) When land in agricultural use and being valued, assessed and taxed under the provisions of this Act, is applied to a use other than agriculture, it shall be subject to additional taxes, hereinafter referred to as roll-back taxes, in an amount equal to the difference, if any, between the taxes paid or payable on the basis of the valuation and the assessment authorized hereunder and the taxes that would have been paid or payable had the land been valued, assessed and taxed as other land in the taxing district, in the current tax year immediately preceding, in which the land was valued, assessed and taxed hereunder.
If in the tax year in which a change in use of land occurs, the land was not valued, assessed and taxed under this Act, then such land shall be subject to roll-back taxes for such of the two (2) tax years immediately preceding in which the land was valued, assessed and taxed hereunder.
In determining the amounts of the roll-back taxes chargeable on land which has undergone a change in use, the assessor shall for each of the roll-back tax years involved, ascertain :
(1) The full and fair value of such land under the valuation standard applicable to other land in the taxing district;
(2) The amount of the additional assessment on the land for the particular tax year by deducting the amount of the actual assessment on the land for that year from the amount of the land assessment determined by the assessing authority; and
(3) The amount of the roll-back tax for that tax year by multiplying the amount of the additional assessment determined under (2) hereof by the general property tax rate of the taxing district applicable for that tax year.
Approved June 18, 1973.