rollback


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Roll Back

To sell an option position and buy another with the same underlying asset and strike price, but with an earlier expiration date. One may also call this rolling backward.

rollback

A retroactive claim for a higher ad valorem (property tax) rate when property is sold or put to a higher use than the one for which it was assessed.The rollback period can be as great as 10 prior years of recalculated taxes.

Example:  Farmer Brown owns 100 acres of land at the corner of a busy road used by almost all commuters in the area. The land is worth at least $200,000 an acre, but because of state law favorable to agricultural uses, it is appraised for tax purposes at only $10,000 an acre. Farmer Brown sells the land to Doris Developer, who is surprised when the real estate tax bill comes due
a few months later and there is a rollback for 5 years. Doris will owe 5 years of prior real estate taxes calculated on an appraised value of $200,000 per acre. In all likelihood, Farmer Brown had an innocent-sounding clause in his sales contract that said, “The parties will prorate real estate taxes as of the date of closing, except that seller shall not be responsible for any increase in taxes
as a result of the sale.” Without the clause, if they had simply agreed to pro-rate taxes (as most form contracts provide), then Farmer Brown might have to reimburse Doris Developer for over four years, worth of the taxes.

References in periodicals archive ?
R-North Reading, said the tax rollback proposal was designed in a way that it would not reduce any revenues during the 2013 fiscal year that begins July 1, providing a full year to plan for any revenue reductions.
I'd like to start at rollback and try to get this budget down 5.
In both cases, a build-up of ice on the FOHE restricted the flow of fuel to the engine, resulting in the engine rollback.
Unlike traditional tape or disk-to-disk backup restorations, snapshot rollback does not require that the data be "unpacked" from a special backup format by being run through a backup server.
A number of City Council members say they won't end the rollback and that searching for budget cuts is a more productive way to compensate for the difference.
If rollback years are under consideration by IRS Appeals, a waiver by the taxpayer of its rights, un der the ex parte communication prohibition rules, to be present during communications between the Appeals Office and the APA Team members.
Asda chief executive and president Tony DeNunzio said: 'Lowering the cost of living is at the heart of our business and so far, Rollback has delivered almost pounds 1billion worth of cuts.
What is for certain is that some politicians are seeking a rollback of the mark-to-market accounting rules.
The Beer Institute said that support for the rollback is apparently growing as Senator Rick Santorum (R-PA) is soon expected to bring similar legislation to the Senate floor.
Thirty-five-degree bucket rollback at ground level reduces spillage
Given private sector projections with respect to growth in Japan, it does seem to me that there is room for very serious consideration of additional fiscal measures in Japan,'' Rubin told reporters when asked whether he backs a rollback in the tax rate from 5% to 3%.
The Commissioner of Insurance, directed to promulgate specific rate rollback percentages in certain lines of insurance, recommended rate rollbacks in excess of the amount recommended by the insurance industry and by his staff (but lower than those designated by the legislature).