When would rollback taxes most likely be imposed on a property?

Rollback taxes are a form of taxation that applies primarily to properties that have been receiving a special agricultural use valuation, meaning they have been benefiting from lower property taxes due to their designated use for agriculture. When such a property undergoes a change in use that disqualifies it from agricultural valuation—most commonly when it is developed for a purpose that is not agricultural, like converting to a residential or commercial subdivision—rollback taxes are triggered.

The situation described in the first scenario, where a property that has been under an agricultural exemption is developed into a subdivision, would directly lead to the imposition of rollback taxes. This occurs because the change in use from agricultural to residential reduces or eliminates the agricultural exemption, prompting the tax authority to assess back taxes for the previous years when the property benefited from this lower tax rate.

The other choices do not align with scenarios that would invoke rollback taxes. For instance, when a property used for agricultural purposes is no longer productive, this could lead to a reassessment, but rollback taxes specifically apply to use changes rather than productivity. Similarly, rolling loan fees into a refinance has no connection to property use changes or tax re-assessment. Lastly, changing property use from residential to commercial does not directly implicate rollback taxes tied to agricultural