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 ?
Motorists, primarily the public transport sector that rely heavily on diesel, will be benefitting from a P1.10 per liter rollback in the price of the petroleum product this week.
Sought for comment,Pangkalahatang Sanggunian Manila and Suburbs Drivers Association (Pasang Masda) president Roberto Martin said it is premature to have a fare rollback.
The court's backing of the mandated rate rollback was conditional upon whether insurers can demonstrate that the rollback will prevent them from obtaining a "fair return." rather than on the potential involvency test that was called for under the initial proposition.
But environmentalists will not surrender "America's Serengeti" without an intense fight that will recall many similar encounters, such as the confrontation over unhindered logging in the days of Reagan-era Interior Secretary James Watt, and the environmental rollbacks that were part of former House Speaker Newt Gingrich's "Contract With America."
Legal Critical Assumptions: The Report cites a number of critical assumptions that relate to competent authority agreements, e.g., their effectiveness or rollback effect.
An Asda spokesman said: "Grocery rollbacks over the past 12 months have already led to a 1.6 per cent fall in the cost of food across supermarkets, and now George reductions are set to bring prices tumbling at fashion stores nationwide."
The FCC quickly created a new Cable Services Bureau, hired 240 additional staff members, and promulgated a series of rate rollbacks between April 1993 and July 1994.
Because tort reform legislation should result in lower claims costs for insurers, and because lawmakers felt that these reduced costs should be prospectively passed on to the consumer, the legislature also mandated rate rollbacks in certain lines of insurance most affected by the enacted tort reforms.
"We pick up the difference," snaps homeowner Judy Rosenfeld, who has watched her tax assessment shoot up 216 percent in four years while numerous office buildings around her talked their way into rollbacks. For the city, "we're the goose that lays the golden egg." How the other half lives
Donald Trump gave a speech attempting to change the narrative surrounding his rollbacks and attacks on clean air, clean water, and climate safeguards.
Prior to the anticipated hefty rollbacks, fuel prices in Metro Manila as monitored by the Department of Energy (DOE) have been ranging from P45.90 to P60.26 per liter for gasoline; P40.05 to P48.34 per liter; and P44.85 to P54.65 per liter for kerosene.
Other oil firms will announce their price rollbacks in the next few hours.