Greenbelt Property Information
From Tennessee State Comptroller of the Treasury, Division of Property Assessments & State Board of Equalization
What is Greenbelt?
In 1976, the Tennessee General Assembly enacted the Agricultural, Forest and Open Space Land Act of 1976 (the "Act")-the law is commonly known as "greenbelt". The Act is codified in Tennessee Code Annotated §§ 67-5-1001 through 1050. The purpose of the Act is to help preserve agricultural, forest, and open space land. This is accomplished by valuing land based upon its present use, rather than at a highest and best use. When property is valued at its highest and best use, the threat of development can bring about land use conflicts, create high costs for public services, contribute to increased energy usage, and stimulate land speculation.
The State Board of Equalization is responsible for approving the forms used to apply for agricultural, forest or open space classification. In addition, the State Board of Equalization hears appeals of denials of timely filed greenbelt applications, appeals concerning liability for rollback taxes and appeals of use value.
You can submit your property’s greenbelt application to the county for any one of the three uses as covered above. The State Board of Equalization approved the following Greenbelt forms pursuant to Tenn. Code Ann. §§ 67-5-1005 through 1007 for usage at the county level:
Agricultural Land
What is agricultural land? (Tenn. Code Ann. § 67-5-1004(1))
For land to qualify as agricultural, it must be at least 15 acres, including woodlands and wastelands, and either:
- constitute a farm unit engaged in the production or growing of agricultural products; or
- have been farmed by the owner or the owner’s parent or spouse for at least 25 years and is used as the residence of the owner and not used for any purpose inconsistent with an agricultural use.
Classification as agricultural (Tenn. Code Ann. § 67-5-1005(a)(3))
In determining whether any land is agricultural land, the assessor of property shall take into account, among other things, the acreage of the land, the productivity of the land, and the portion of land in actual use for farming or agricultural operation.
If land classified as agricultural produces gross agricultural income averaging at least $1,500 per year over any three-year period, then the assessor may presume that a tract of land is agricultural. This presumption is rebuttable. In other words, it is not a requirement that an owner prove this income. It is only an aid for the assessor to use. Even if the land does not produce any income, it can still qualify, as long as the land is being actively farmed.
Forest Land
What is forest land? (Tenn. Code Ann. § 67-5-1004(3))
Forest land is defined as land constituting a forest unit engaged in the growing of trees under a sound program of sustained yield management that is at least 15 acres and that has tree growth in such quantity and quality and so managed as to constitute a forest.
Classification as forest (Tenn. Code Ann. § 67-5-1006(b) & (c))
In determining whether any land is forest land, the assessor shall take into account, among other things, the acreage of the land, the amount and type of timber on the land, the actual and potential growth rate of the timber, and the management practices applied to the land and the timber on it. The assessor may request the advice of the state forester in determining whether land qualifies as a forest. Further, the assessor shall consider whether the land is enrolled in a conservation program administered by the United States Department of Agriculture, whether the land is subject to a conservation easement as defined by § 66-9-303, or whether the land is restricted by § 68-212-225, if, at the time of its enrollment, the land was classified as forest land by the assessor of property.
Open Space Land
What is open space land? (Tenn. Code Ann. § 67-5-1004(7))
Open space land is defined as land, other than agricultural or forest land, containing at least three acres characterized principally by an open or a natural condition and whose preservation would tend to provide the public with one or more of the following benefits found in Tenn. Code Ann. § 67-5-1002(2)(A)-(E):
The use, enjoyment, and economic value of surrounding residential, commercial, industrial, or public use lands.
The conservation of natural resources, water, air, and wildlife.
The planning and preservation of land in an open condition for the general welfare.
A relief from the monotony of continued urban sprawl.
An opportunity for the study and enjoyment of natural areas by urban and suburban residents who might not otherwise have access to such amenities.
Open space land also includes lands primarily devoted to recreational use.
Classification as Open Space Land (Tenn. Code Ann. § 67-5-1007(a))
The planning commission for the county or municipality must designate the area for preservation as open space land. Once the planning commission adopts an area, then land within that area may be classified as open space. If the planning commission has not designated an area, then this classification is not available.
Tax Advantages
Once property is qualified for Greenbelt, it is valued based on its present use rather than its market value which often results in a lower tax assessment and thus a lower tax bill. This use value may vary depending on the type of property as well as where the property is physically located, but recognizes the value of the property as used for agricultural, forest, or open space land rather than a potential market value. The exact amount of tax savings may vary for each property depending on the amount of acreage that qualifies for Greenbelt and what type of Greenbelt status is granted. The “use value” is set by law and may vary if the property is classified as agricultural, forest, or open space land.
As the Greenbelt program is created by law you may want to seek legal advice or tax advice when deciding whether applying for Greenbelt is the best choice for you. You may also wish to review the State Board of Equalization’s Greenbelt Manual which has many examples and helps explains portions of the Greenbelt program.