Agricultural Classification of Lands, aka "Greenbelt"
Agricultural Classification of Lands
Allows for lands to be valued for property tax purposes based on their agricultural use; versus based on a highest and best use, i.e. market value. Per Florida Statute 193.461(3)(b); “…only lands that are used primarily for bona fide agricultural purposes shall be classified agricultural. The term “bona fide agricultural purposes” means good faith commercial agricultural use of the land”.
Per the Florida Department of Revenue Property Tax Rule 12D-5.001 Agricultural Classification, Definition
“(1) For the purposes of Section 193.461, F.S., agricultural purposes, does not include the wholesaling, retailing or processing of farm products, such as by a canning factory.
(2) Good faith commercial agricultural use of property is defined as the pursuit of an agricultural activity for a reasonable profit or at least upon a reasonable expectation of meeting investment cost and realizing a reasonable profit. The profit or reasonable expectation thereof must be viewed from the standpoint of the fee owner and measured in light of his investment.”
Agricultural Classification is an Assessment Reduction
And is itemized on the TRIM Notice as “Classified Agricultural Use”. The assessment reduction is the difference of the Market Value and the Agricultural Value of agricultural classified lands on a parcel. Agricultural classification is not an exemption. It is not itemized on the Tax Bill.
Agricultural Classification is for property tax purposes
However, a landowner with a bona fide agricultural operation on their land may be entitled to certain other rights or exemptions from other governing authorities. These authorities may accept the Manatee County Property Appraiser Office’s (PAO’s) agricultural classification as evidence of the landowner’s eligibility for such rights or exemptions. But the PAO is bound by the provisions of Florida Statute 193.461 for classifying lands as agriculture. And the PAO cannot change these provisions to accommodate other purposes. If necessary, landowners should inquire of those authorities for other means to provide evidence of their eligibility for any such rights or exemptions.
Qualifying use must be established by January 1 of the Tax Year. Applications must be submitted by March 1 of the Tax year.
Per Florida Statute 193.461(3)(a): “…Failure to make timely application by March 1 constitutes a waiver for 1 year of the privilege granted in this section for agricultural assessment…”