Farm Island

[ursa minor]

I’ve heard that the property may be in “current use” tax status. From my understanding that would mean either the seller or the potential buyer would need to come up with the difference between the reduced current use tax rate and the residential rate from the time the current use variance was granted. Depending on how long the island has been in “current use” that could be a tidy sum.

[chasedawg]

Originally Posted by ursa minor

I’ve heard that the property may be in “current use” tax status. From my understanding that would mean either the seller or the potential buyer would need to come up with the difference between the reduced current use tax rate and the residential rate from the time the current use variance was granted. Depending on how long the island has been in “current use” that could be a tidy sum.

Good thought....The potential buyer is going to continue with the "current use" status. From what I understand it will be a tree farm to gain "current use" status. Many trees will be removed especially the umbrella trees that have been there for 90 years.

[SAB1]

Lot of rumors out there. Who knows if half are true but I have heard there are tax issues ie. back taxes owed. I’m sure the town wants it developed for the tax revenue. Don’t believe the camp pays taxes.

[Wifi-1]

According to my sources, there is no back taxes owed on the land, and hasn't been.

[SAB1]

Originally Posted by Wifi-1

According to my sources, there is no back taxes owed on the land, and hasn't been.

Good. I found it hard to believe since it wasn’t long ago the camp bought part of the island.

[hemlock]

Originally Posted by chasedawg

Good thought....The potential buyer is going to continue with the "current use" status. From what I understand it will be a tree farm to gain "current use" status. Many trees will be removed especially the umbrella trees that have been there for 90 years.

The way current use works is that the owner gets a reduced tax rate for keeping the property in its current use as farmland ,woodland, unproductive land etc. Once the property is developed it is considered a change in use and a tax penalty is applied in the amount of 10 percent of the ad valorem value of the land. So 12 house lots at 300k each equals a penalty paid to Tuftonboro of 360000. Current use is only applicable if the property is at least 10 acres in size. Subdivision below that size triggers the penalty.

The only way to avoid the penalty is to not develop the property