Greenbelt

Productive values are established by the Utah State Tax Commission with the assistance of a five-member Farmland Assessment Advisory Committee and Utah State University. Productive values apply county-wide and are based upon income and expense factors associated with agriculture activities. These factors are expressed in terms of value per acre for specific land classifications.

Land is classified according to its capability of producing crops or forage. Capability is dependent upon soil type, topography, availability of irrigation water, growing season, and other factors. The County Assessor classifies all agricultural land in the county based on SCS Soil Surveys and guidelines provided by the Tax Commission. The general classifications of agricultural land are irrigated, dry land, grazing land, orchard, and meadow. If you disagree with your land classification, you can appeal to your county board of equalization for reclassification.

Private farmland can quality for assessment and taxation under the Farmland Assessment Act if the land:

• is at least five contiguous acres in area. Land less than five acres may qualify where devoted to agricultural use in conjunction with other eligible acreage under identical legal ownership. Land used in connection with the farmhouse, such as landscaping, etc. cannot be included in the acreage for FAA eligibility,
• is actively devoted to agricultural use, and the operation is managed in such a way that there is a reasonable expectation of profit;
• has been devoted to agricultural use for at least two successive years immediately preceding the tax year in which application is made; and
• meets average annual (per acre) production requirements.

To qualify for the Farmland Assessment Act land must produce in excess of 50 percent of the average agricultural production per acre for the given type of land and the given county or area. To determine production levels the County Assessor will use the following sources: the most recent publication of Utah Agricultural Statistics; crop and enterprise budgets published by Utah State University; or standards established by the Tax Commission. 

Examples:

 

• A farmer grows alfalfa. The average annual production of alfalfa in his area is four tons per acre per year. To qualify he must produce more than two tons per acre per year.
• A rancher has 10 acres of irrigated pasture which would reasonably carry 10 cows or 50 sheep through the grazing season. To qualify he will need to graze more than five heads of cattle or 25 sheep.

The acreage requirement may be waived if the owner can show that 80 percent or more or the owner's, purchaser's, or lessees' income is derived from agricultural products produced on the land.

The production requirement will be waived if the land is involved in a bonafide range improvement program, crop rotation program, or other similarly accepted agricultural practice which does not give reasonable opportunity to satisfy the production level requirement.

New applications for assessment and taxation under the Utah Farmland Assessment Act must Be filed by May 1. Application necessary because of ownership change, legal description change, assessor request, etc., can be filed anytime.

An application for assessment and taxation of agricultural land under the FAA can be obtained from your County Assessor. This application should be completed and returned to the County Assessor before May 1, of the year in which the preferential assessment is wanted. Supporting documentation may be required such as federal tax returns, affidavits, lease agreements, sales receipts, production records, etc. which shows the production requirement has been met for the preceding two years.

Any owner of agricultural land may apply for assessment and taxation under the Farmland Assessment Act.

Leased land can qualify for assessment and taxation under the FAA if the acreage requirement is met and the production requirement is satisfied. A purchaser or lessee may qualify the land by submitting, along with the application from the owner, documents certifying that the production levels have been satisfied.

When land becomes ineligible for farmland assessment (such as when it is developed or goes into non-use), the owner becomes subject to what is known as a rollback tax. The rollback tax is the difference between the taxes paid while on greenbelt and the taxes which would have been paid had the property been assessed at market value. In determining the amount of rollback tax due, a maximum of five years in question will be applied to determine the tax amount. 

ROLLBACK TAXES ARE DUE AND PAYABLE WITHIN 30 DAYS AFTER NOTIFICATION. IF NOT PAID ON TIME, TOTAL ROLLBACK TAXES WILL BE SUBJECT TO THE GREATER OF $10 OR 2% PENALTY, WHICHEVER IS GREATER, UNDER SECTION 59-2-506, UCA 1953.