Secondary liability of transferees requires notice and a hearing before tax recovery; recovery must be deferred pending decision.

A transferee of agricultural land cannot be subjected to secondary tax recovery without prior notice and an opportunity to be heard: the proviso creates secondary liability only where the assessing authority shows earnest, unsuccessful attempts to recover from the transferor and informs the transferee of that fact. The transferee may assert that recovery from the transferor remains possible, and such contentions must be considered before any recovery order against the transferee. Absent satisfaction of these conditions and procedural opportunity, recovery from the transferee is not lawfully supportable and revenue recovery should be deferred.

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Issues: Whether a transferee of agricultural land must be given notice and an opportunity to be heard before tax assessed on the transferor is recovered from the transferee under the proviso to section 23.

Analysis: The proviso to section 23 imposes a secondary liability on the transferee only in specified circumstances. The second limb of the proviso permits recovery from the transferee where tax assessed on the transferor cannot be recovered from the transferor. That limb requires the Department to demonstrate that earnest attempts were made to recover from the transferor and to inform the transferee of that fact. The transferee must be allowed to contend that recovery can still be effected from the transferor; such contentions must be considered before any order for recovery from the transferee is made. Absent satisfaction of the conditions in the proviso and an opportunity for the transferee to be heard, recovery against the transferee is not lawfully supportable.

Conclusion: The transferee is entitled to notice and an opportunity to be heard before tax assessed on the transferor is recovered from the transferee under the proviso to section 23; accordingly the assessing authority must issue such a notice and defer revenue recovery pending its decision.

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