NashvillePropertyTax.Com - Agriculture Preferential Assessment

Preferential Assessment of Farm Land

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Due to rising land prices, the Tennessee General Assembly has provided for preferential assessments for farms which qualify for the Agriculture classification. These farms receive special values not related to the market values of the highest and best use of the land. The values used are from special calculations ordered by the statutes and from special farm valuation studies made by the State Division of Property Assessments. These values do not typically reflect the values for which the farms could be sold for on the open market. In many cases, the farm land values reflect tremendous discounts from the actual values and the taxes which would have been paid under the actual values.

In order to qualify for Agriculture Classification, an application must be filed with the Assessor prior to March 1, of the first tax year requested. The farm must contain at least fifteen (15) acres and be engaged in the production or growing of agricultural products. The land is presumed to be agricultural if it produces at least $1,500 per year averaged over a three (3) year period in which the land is classified as Agriculture. Agricultural Classification is also available to properties which have been owned for extended periods and are also used not inconsistent with agricultural use.

             Links to Preserving Tennessee Land:

                   Butterfly Hollow Farm
                   Tennessee Farm Bureau
                   Tennessee Parks & Greenway Foundation

Other preferential classifications such as Forest Land Classification and Open Space Classification are also available to landowners.

When any land ceases to qualify for any of these special classes, there are roll back taxes which have to be paid. These taxes are equal to the difference in the taxes paid and the taxes which would have ordinarily been due if paid under the full market value of the property. The limit for roll back is three (3) years for Agricultural and Forest Land Classifications and five (5) years for Open Space Classification.

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