What is the penalty for breaching a conservation use by selling to a non-qualified owner?

When a property subject to conservation use is sold to a non-qualified owner, the primary penalty involves addressing the tax benefits that were received during the period the land was under conservation use. Specifically, the penalty entails recalculating the property taxes based on its fair market value and then imposing a repayment of double the cumulative difference in property taxes that were not paid, plus any applicable interest. This penalty structure serves as a deterrent against misuse of conservation easements and ensures that landowners maintain their commitments under these agreements.

The rationale behind this significant penalty—double the tax savings—is to discourage landowners from opting out of conservation use agreements for financial gain, while still benefiting from reduced property taxes. It reinforces the notion that conservation use agreements are intended to preserve the land’s ecological and open-space values.

Other options, while they may imply penalties, do not accurately capture the established legal frameworks governing conservation use agreements. The penalty needs to reflect the financial incentives that landowners received, which the correct answer effectively encapsulates.