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HB 1846

Taxes, Real Property - As introduced, eliminates liability for rollback taxes on agricultural, forest, or open space land with a greenbelt classification when the land is sold; requires that a buyer of property with a greenbelt classification submit a new application to renew the property's greenbelt classification. - Amends TCA Section 11-14-307; Section 11-14-406; Section 11-7-109; Title 66; Section 67-4-409; Title 67, Chapter 5, Part 10 and Section 67-5-2402.

114th Regular Session (2025-2026) Introduced by Ed Butler

Eliminates rollback taxes when greenbelt-classified agricultural land sells, requiring new owner applications to renew the tax classification instead.

Taken off notice for cal in s/c Finance, Ways, and Means Subcommittee of Finance, Ways, and Means Committee
#realproperty #taxes
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Bill Summary · HB 1846

Legislative bill overview

HB 1846 eliminates "rollback taxes" that property owners normally owe when agricultural, forest, or open space land loses its greenbelt tax classification upon sale. The bill requires buyers to submit new applications to maintain the greenbelt classification rather than having it automatically transfer.

Why is this important

Rollback taxes can represent significant financial penalties—typically recovering several years of tax benefits at regular rates when classified land changes use. This bill would reduce the financial burden on sellers of greenbelt-classified property, potentially making it easier to transition land ownership while keeping it in conservation use if the new owner applies. However, it also removes a mechanism that discourages conversion of agricultural/forest land to development.

Potential points of contention

  • Revenue impact: Eliminating rollback taxes reduces state and local tax revenue; the fiscal impact depends on transaction volume and typical rollback amounts
  • Conservation effectiveness: Rollback taxes incentivize maintaining land in agricultural/forest use by penalizing conversion; removing this penalty may encourage development of currently-protected lands
  • Fairness to new buyers: Requiring new applications places compliance burden on purchasers and creates uncertainty about whether greenbelt status will be renewed, potentially affecting property values and buyer willingness

Compiled from official sources — confirm details with the bill’s official record.

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