LANDOWNER STRATEGIES TO MAXIMIZE RETURNS UNDER A COMPENSATORY ZONING SCHEME

Farmland retention programs to maintain open space amenities and the local rural charm are a concern to communities in urbanizing areas. In this article, the most likely course of action a landowner will take under a compensatory zoning program is examined. Selling costs and alternative tax policies are also considered. The sale of less than fee interest (development rights) by the installment sales basis offers the seller little advantage as compared to the cash sale basis. Rollback taxes on development rights will increase selling costs, but are partially offset by tax savings.