§ 44-27-9 - Change of ownership – Procedure for continuance of classification – Effect on land use change tax.
SECTION 44-27-9
§ 44-27-9 Change of ownership –Procedure for continuance of classification – Effect on land use changetax. – (a) Upon the change of ownership of title, as recorded in the land evidencerecords of the city or town, of land previously classified as farm, forest, oropen space land, the assessor of the city or town where the land is locatedshall notify the new owner that the land is classified as farm, forest, or openspace and that land withdrawn from that classification is subject to the landuse change tax provided for in § 44-5-39. The new owner may apply to thelocal assessor for continuance of classification and special assessment asprovided in § 44-5-12. Upon certification by the new owner that the landcontinues its use as farmland, its management as forest land, or itspreservation as open space land, the assessor shall continue it as that on theassessment list and notify the director of environmental management of thechange in ownership.
(b) A change of ownership of land classified as farm, forest,or open space land, except for change in ownership through inheritance orinterfamily transfer, where the new owner continues its classification as farm,forest, or open space land, commences anew the computation of the period theland has been so classified for the purposes of determining the land use changetax provided for in § 44-5-39.
(c) For the purposes of this section, transfer of ownershipof land from an individual to a corporation wholly owned by that individualand/or his or her immediate family is not considered a change of ownership ofthe land. Where the owner of land classified under this chapter is acorporation, any change in ownership of ten percent (10%) or more of theoutstanding common stock of the corporation is considered a change in ownershipof the land, and shall be reported to the assessor of the town or city in whichthe land is located.
(d) New owners of land previously classified as farm, forest,or open space land who do not apply for continuance of classification as insubsection (a) of this section are considered to have voluntarily withdrawn theclassification and become liable for the land use change tax in effect at thetime of change of ownership. This tax is determined by the assessor withinforty-five (45) days of the end of the recertification period provided for insubsection (a) of this section and falls due at the time the use of the land ischanged. This tax constitutes a lien against the land and runs with the deeduntil the obligation is satisfied.