§ 42-17311 — Events requiring payment of deferred tax

A. The total amount of deferred property taxes, plus interest and costs, that has accrued with respect to a tax deferred residence is due and payable if:

1. The individual who claimed the deferral dies without a surviving spouse who qualifies under section 42-17302.

2. The tax deferred residence is sold or becomes subject to a fully executed, binding contract of sale or title to the residence is otherwise transferred to persons other than the individual or the individual's spouse who qualifies under section 42-17302. A tax deferred residence may not be transferred or conveyed unless the deferred property taxes, interest and costs are paid in full.

3. The residence is no longer the residence of the individual and, in the case of a married individual, the individual's spouse who qualifies under section 42-17302, unless the individual or spouse is required to be absent from the residence due to illness.

4. The residence becomes income producing property.

B. If the county assessor has reason to believe that any of the circumstances listed in this section has occurred, the assessor shall immediately notify the county treasurer and the state treasurer.