How the program affects acreage
Tennessee Greenbelt: What Land Buyers and Sellers Should Know
If you buy or sell acreage around Manchester, you will hear the word greenbelt. It can make a big difference in the yearly tax bill, and it can create a bill called rollback taxes when land changes hands or changes use. Here is a plain explanation based on the Tennessee Comptroller and State Board of Equalization.
What greenbelt is
Greenbelt is the common name for the Agricultural, Forest and Open Space Land Act of 1976. Instead of valuing qualifying land at its highest and best use, the county values it based on its present use. The Comptroller notes this often results in a lower assessment and a lower tax bill.
The three classifications
- Agricultural land must be at least 15 acres, including woodlands and wastelands, and either be an agricultural unit producing crops, livestock or other agricultural products, or meet a long term ownership and residence test in the law. Two separate tracts in the same county can sometimes qualify together.
- Forest land must be at least 15 acres managed for growing trees, and the owner needs a forest management plan.
- Open space land must be at least three acres in a natural or open condition, and it is only available where the local planning commission has designated an open space area.
No owner may place more than 3,000 acres under greenbelt in one taxing jurisdiction.
How to apply
An owner applies with the county assessor of property. First time applications are due by March 15. Approved applications are recorded with the register of deeds, and the owner pays the recording fee. Coffee County uses a county specific application approved by the State Board of Equalization, available from the assessor.
What happens when land sells
Reapplication is not required unless ownership changes as of the January 1 assessment date. So when you buy greenbelt land, plan to file your own application on time if you want to keep the classification.
Rollback taxes
If land leaves greenbelt, rollback taxes may be due. The Comptroller describes them as a recapture of taxes saved, not a penalty. They equal the difference between the use value and market value assessments for the preceding three years for agricultural and forest land, or five years for open space. The assessor calculates the amount. Rollback taxes become delinquent on March 1 of the year after the notice is sent.
Questions for your purchase contract
- Is the land currently classified as greenbelt, and under which category?
- Does the buyer plan to keep it qualified?
- If rollback taxes come due, who pays them? Put the answer in writing.
The Comptroller suggests getting legal or tax advice when deciding whether greenbelt is right for you, and I agree. I can help you ask the right questions and connect you with the right professionals.
Selling land with greenbelt status
If you are selling acreage, gather your greenbelt paperwork early so buyers understand the tax picture. I can help you price and market land in Coffee County. Request a free home value report or read my land buying guide to see what buyers will ask.
Common questions
How many acres do you need for greenbelt in Tennessee?
At least 15 acres for agricultural or forest land, and at least three acres for open space land in a designated area.
What are rollback taxes in Tennessee?
The taxes saved under greenbelt for the preceding three years (agricultural and forest) or five years (open space), due when land leaves the program.
When is the greenbelt application deadline?
First time applications must be filed with the county assessor by March 15.
Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.