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 agricultural operations in close proximity to expanding urban areas, where taxing agricultural property at market value could make farming operations economically prohibitive.
The acreage requirement may be waived if the owner can show that 80 percent or more of the owner's, purchaser's, or lessees' income is derived from agricultural products produced on the land or failure to meet the 5 acre requirement arose solely out of an eminent domain proceeding.
The production requirement may be waived if the land is involved in a bonafide range improvement program, crop rotation program, or other similarly accepted agricultural practice, which does not give reasonable opportunity to satisfy the production level requirement.
The Utah State Tax Commission, based on a four-year study conducted by Utah State University, has adjusted the values used for farmland assessment. The basic changes in addition to the valuation changes include: