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 ?
Rollbacks can be performed surgically at the file system level, targeting any administrator-selected combination of operating system files, program files, user registry settings, user data, or any other unique file sets deemed valuable to a specific IT infrastructure.
We believe that the effect of the series of oil price rollbacks must also benefit our people in northern Mindanao by reducing the minimum PUJ (public utility jeepney) fare in their area," the statement quoted Ginez as saying.
Earlier in the day, DMK working president, along with the representative of its allies, protested in Chennai Kolathur demanding a rollback of bus fare hike.
Correction: An earlier version of this story was incorrect about the rollback election threshold in the House version of Senate Bill 2; as it came out of committee, the bill would leave that threshold where it is now - at 8 percent.
Tenant representative Harvey Epstein was also confident prior to the vote that the data supported a rent rollback but said that he was hoping for at least a rent freeze as well.
Obviously, the court did not intend the mere question of solvency to be the benchmark, or it would have let the rollback provision stand as it was.
He said study is needed to weigh the rollback in conjunction with possible changes of other taxes, including the income tax, before being put to a vote.
Products included in the Rollback are 12 x i7og packs of Bisto Gravy Granules down from [pounds sterling]12.
Ramsay made it clear early on he won't vote for any tax rate over rollback, which is a tax rate that would raise the same amount of money in fiscal year 2010-11 as the current year.
KARACHI, May 20 -- Karachi Chamber of Commerce and Industry has showed its deep concern on the rollback of Pakistan Automated Customs Clearance System (PACCS) software.
A second incident involving a Boeing 777 occurred 10 months later when a Delta Air Lines plane experienced a single engine rollback while cruising over Montana en route to Atlanta.
He's proposing a rollback in emissions of gases believed linked to global warming to 2000 levels by 2010, followed by additional rollbacks.