Environment (Forestry)

This bill changes Tennessee's property tax rules for agricultural, forest, and open space land (greenbelt classification). When owners sell such land, they no longer face liability for back taxes (rollback taxes) that would otherwise apply. Instead, the buyer must submit a new application to maintain the tax break, but the seller won't owe back taxes regardless of whether the buyer renews the classification. The rule takes effect July 1, 2026, for property sales on or after that date.

HB 1846 eliminates rollback tax liability when agricultural, forest, or open space land with a greenbelt classification is sold. The new buyer must submit a fresh application to maintain the special tax status, but the seller faces no tax penalties for the sale itself. This means buyers don't owe back taxes simply because they purchased land that previously had the greenbelt classification. The rule applies to property sales occurring on or after July 1, 2026.

HB 1325 establishes Tennessee's Farmland Preservation Fund to support conservation easements on farmland and forestland. The bill creates a dedicated fund within the state general fund (administered by the Department of Agriculture) that provides grants for landowners to place permanent conservation easements on their property, held by qualified 501(c)(3) nonprofit organizations. Key provisions require land to remain in agricultural or forestry use, prohibit selling or transferring easements acquired through the grant, and mandate unspent funds carry forward annually. This directly affects Tennessee landowners seeking to preserve their property through conservation agreements and qualified nonprofit easement holders. The policy change formalizes a grant program to secure long-term land preservation without restricting farming or forestry activities.

SB 207 creates a new "farmland preservation fund" within Tennessee's state budget to support the long-term protection of agricultural and forested land. The fund provides grants to help farmers and foresters place permanent conservation easements on their property - legal agreements that prevent development while allowing farming or forestry activities. These grants can be awarded directly to landowners or to qualified nonprofit organizations (like 501(c)(3) groups) that hold the easements, with requirements including proof of the easement agreement and ongoing agricultural use. The Tennessee Department of Agriculture will manage the fund, and unspent money will carry forward annually instead of reverting to the general budget.