The Utah Farmland Assessment Act (FAA, also called the Greenbelt Act) allows qualifying agricultural property to be assessed and taxed based upon its productive capability instead of the prevailing market value. This unique method of assessment is vital to agriculture operations in close proximity to expanding urban areas, where taxing agricultural property at market value could make farming operations economically prohibitive.
What does it take to qualify?
- Private farmland can qualify 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.
- Land must be actively devoted to agricultural use, and the operation managed in such a way that there is a reasonable expectation of profit.
- Land must have been devoted to agricultural use for at least two successive years immediately preceding the tax year in which application is made and meet the average annual (per acre) production requirements.