Select the correct statement regarding rollback taxes and Section 13 of the New Home Contract.

The correct statement regarding rollback taxes and Section 13 of the New Home Contract is that the seller must pay the additional tax if there are new improvements. This reflects the principle that when a property undergoes new development or improvements, it may change its tax status, leading to a reassessment of property taxes. Rollback taxes are designed to recapture the tax benefit a property owner received for a lower tax assessment prior to the improvements. Thus, it’s the seller's responsibility to handle any additional tax liability incurred due to those improvements.

In this context, sellers need to be aware of the implications of making significant enhancements to a property before selling, as they will be liable for any corresponding rollback taxes triggered by those improvements. This ensures that the property’s tax burden is properly aligned with its current assessed value after changes are made.

The other options do not correctly reflect the responsibilities tied to rollback taxes. The statement regarding the seller being responsible for all taxes on the property is misleading because not all taxes are specifically assigned to the seller, especially if the buyer assumes some of that responsibility through negotiation. The option claiming that only the buyer pays rollback taxes is inaccurate, as the seller is liable for the taxes due to improvements. Lastly, the assertion that rollback taxes do not