Usually the amount a property is taxed is based on what the property is worth on the market. The Agricultural, Forest and Open Space Land Act of 1976, better known as the Greenbelt Law, allows certain land to be taxed on
its present use instead. The law is designed to preserve farm and
forest land for valuable food and fiber and to maintain open space for
public enjoyment by easing some of the burden of property taxes. To
qualify, property must meet certain criteria such as land type, size
minimums, use, and income produced from farming.
There are 3 types of land which may qualify for greenbelt classification: agricultural, forestry and open space land.
Download Greenbelt Brochure
Land which is part of a farm "engaged in the production or
growing of crops, plants, animals, nursery, or floral products." The
property may include some areas which don't produce farm products (such
as woodland and wasteland). It may also include a homesite for the
owner or operator, which is assessed at market value, not use value.
The tract of land must contain at least 15 acres to qualify. A parcel
of property that is at least 10 acres, but less than 15 acres, can
qualify for enrollment if the owner has other property in the program
that is fully qualified. To qualify for greenbelt, farm property must
produce a gross farm income of at least $1,500 per year on average over
any three years it is classified as greenbelt. Property may also
qualify if you, your parent, or your spouse have farmed the property for
at least 25 years, you continue to live on the property , and it is not
used for any purpose inconsistent with farming.
Land is property of 15 acres or more used in the growing of
trees "under a sound program of sustained yield management" or
containing an amount or quality of tree growth which is managed like a
forest. Although forest property does not have to produce a specific
income to be considered for greenbelt, a forestry plan detailing the
acreage, the amount and type of timber, actual and potential growth
rates, and proposed management practices to be applied to the land, must
be developed and filed as part of enrollment. For additional
information regarding forest management please visit the Tenneessee Division of Forestry web site.
Land is property of at least 3 acres maintained in an open or
natural condition. This type of property benefits the public because
it conserves natural resources, provides a natural setting for people
who might not otherwise have access to such a place, and provides
"relief from the monotony of urban sprawl." Requirements for
qualification of open space land include a plan for preservation
approved by state or local planning agencies, or the execution of a
perpetual open space easement.
The law limits the amount of property which can be qualified for
greenbelt to 1,500 acres per owner per county. If an owner owns
property with others or as part of a corporation, partnership, etc.,
each owner is credited with their proportionate share of the acreage
towards that limit.
When a property that has been assessed as Greenbelt becomes
disqualified the owner may be liable to pay what are referred to as
“rollback” taxes on the property. “Rollback” is simply the difference
between the Greenbelt assessment and the market value assessment that
would have been applied if the property had not been in the program. In
effect, it is paying back the tax savings the owner enjoyed under
greenbelt. For Agricultural and Forest properties the rollback period is
3 years (the current year and the 2 preceding years), for Open Space
property the rollback is 5 years. If only a portion of the property is
sold or converted to a non-qualifying use, rollback is only assessed on
that portion, as long as the remainder of the property still qualifies.
An owner should fully understand “rollback” before applying for the
Listed below are reasons for disqualification of Greenbelt classification:
- size of tract or use no longer meet qualifications
- the owner requests in writing to withdraw
- the property is covered by a recorded subdivision plat or an
unrecorded plan of development and any portion of the land is being
- an owner fails to file an application required by the statute
- the land exceeds the acreage limitations of the statute (taxpayer is limited to 1,500 acres per taxing jurisdiction)
- property is sold and converted to other use
Applying for Greenbelt Classificaton
Owners of properties that meet the criteria for enrollment in the
Greenbelt Program can fill out the Agriculture or Forestry application, have it approved,
notarized, and recorded (recording takes place in the Register of Deeds
located in the same building) all in one short visit. To be effective
for the current tax year, the application process must be completed no
later than 1 March.
For more information on the greenbelt application procedures and your rights and responsibilities as a greenbelt owner please contact us.