1. What is The Agricultural, Forest and Open Space Act of 1976 ?

2. What types of properties are eligible for enrollment in the “Greenbelt” program ?

3. How do I apply for Greenbelt ?

4. What are “Rollback Taxes” ?

What is The Agricultural, Forest and Open Space Act of 1976 ?

More commonly referred to as the “Greenbelt Law”, it is tax law enacted by the state legislature to encourage the retention of green spaces around urban areas, and to prevent the loss of family farms due to property taxes based on development speculation values, rather than current use.

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What types of properties are eligible for enrollment in the “Greenbelt” program ?

There are 3 types of land which may qualify for greenbelt classification:

Agricultural Land: a tract of at least 15 acres that is currently engaged in farming (i.e. the production or growing of crops, plants, animals, nursery or floral products). A tract that is smaller than 15 acres , but is at least 10 acres can qualify for greenbelt if the owner has at least 1 tract in the program that meets the minimum 15 acre qualification. The current test of farm use is a property’s ability to generate an average annual income of at least $1,500 over any 3 year period. Property can also qualify, regardless of income, if you, your parent or your spouse has farmed the property for at least 25 years, you continue to live on the property, and the property is not currently used for a purpose inconsistent with farming.

Forest Land: a tract of at least 15 acres engaged in growing trees under a sound program of sustained yield management or having tree growth in such quantity and quality as to be managed as a forest.

Open Space Land: a tract of at least 3 acres maintained in an open or natural condition for public enjoyment and use.

Note: With all three classes, the law limits an owners qualification to 1500 acres in any given county.

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How do I apply for Greenbelt ?

All necessary forms are available at the Assessor of Property’s office. The application, including a certification from the owner about the property’s use, can be filled out and approved during a short office visit. After approval, the property owner is responsible for recording the application at the County Register of Deeds. Once enrolled, the owner is not required to re-apply each year, but is required by law to promptly notify the assessor of any change in the use or ownership of the property which would affect its Greenbelt eligibility.

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What are “Rollback Taxes” ?

When a property that has been assessed as Greenbelt becomes disqualified for any of the following reasons:

- 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, unless the owner can still prove farm use

- property is sold and converted to other use

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. Rollback assessments are made on the next tax roll after the property no longer qualifies for greenbelt. An owner should fully understand “rollback” before applying for the Greenbelt program.

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