John, This is some info to get you started:
Looking to save on your property taxes? If you own 15 acres or more, you just might be able to reduce your Tennessee property tax liability by applying for the Greenbelt Law. The Greenbelt Law, or the Agricultural, Forest, and Open Space Land Act of 1976, was designed to preserve farms, forests, and open space and to reduce urbanization across Tennessee. Greenbelt helps provide much-needed tax relief to landowners and farmers who qualify and it also helps maintain the natural beauty of our state.
WHAT TYPES OF LAND QUALITY FOR THE GREENBELT?
There are three types of land which may qualify: farm, forest, and open lands. (Source: Tennessee Comptroller of the Treasury).
AGRICULTURAL LAND
Agricultural land is land which “constitutes a farm unit 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 farm operator, which will be assessed at market value. The land “must have been farmed by the owner or the owner’s parent or spouse for at least 25 years.” Noncontiguous tracts may also qualify.
FOREST LAND
If you own 15 or more acres that are used in the growing of trees "under a sound program of sustained yield management," then you may qualify.The land does not have to yield an income, however, in this case, an assessor takes into consideration the number of acres, the amount of timber, and the actual and potential growth rate of the timber. They will also consider the management practices that are applied to the land. It’s worth noting that a forest management plan is required to maintain a forest classification.
OPEN SPACE
Many individual home and property owners with land in or near urban areas can qualify for the Greenbelt under the Open Space definition. In this instance, if a property owner has three or more acres that are maintained in an open or natural condition, they may be eligible. The notion behind the Open Space clause is that this kind of preservation “benefits the public by conserving natural resources by providing a natural setting for people who might not otherwise have access to such a place and providing ‘relief from the monotony of urban sprawl.’" It also aids in the conservation of natural resources, water, air, and wildlife.
However, if you plan on developing a golf course on your property, you’re out of luck! Land must be kept in a natural state and as with the forest land clause, you’ll need an approved preservation plan.
HOW DO YOU APPLY FOR THE GREENBELT?
To apply, property owners must complete one of three assessment applications (agricultural, forest, or open space), provide necessary documentation, and have the application notarized. Applications must be received by March 1. There is no fee to apply, however, you must record the application with the county’s register’s office if you’re approved. So now is the perfect time to start the process!
Depending on the county in which you live, reassessments occur on a 4- to 6-year cycle.
WHAT IF MY PROPERTY STRADDLES COUNTY LINES?
This is more common than you might think! If your property crosses county lines (let’s say you have 10 acres in Davidson County and 15 Acres in Williamson county), you are still eligible for the Greenbelt.
This is my own personal journey:
First we visited the assessor's office in Crossville (Cumberland county) and they gave us some phone numbers of people who could complete the forest plan. We called one who worked with the Dept of Agriculture, Forestry division and met with him. Then he scheduled a time to come out and do a walk through of the timber and offered some great information. He wrote up the plan and emailed it to us within a couple of days. We went back to the assessors office with a copy of the plan and they completed a form and I signed it and they had it notarized. Walked across the street to the court house and filed the form for a $12.50 fee.
Entire process was pretty easy but it is a process and took some time. Everyone we dealt with was super nice and easy to work with. The gent from the Forestry Division was the best!
We were told it goes into effect for tax year 2019 and that most people see almost a 50% reduction in property tax but time will tell.
Next we mailed another form and a copy of the green belt form to the TN Dept of Revenue requesting a “Farm Card”. This will allow us to be sales tax exempt when we purchase equipment we use for managing the forest. It took 2 weeks to get the "card" in our hand. It expires Dec 2019. I am guessing it is easy to renew but will find out Dec 2019.
NOTE: Some people who do the forest plans charge. One guy we called said his fee was $200. We didn't know the Forestry Division did them for free until after we contacted them.
Hope this helps, and good luck finding the tractor of your choosing.
Randy
