Greenbelt laws are best described as which of the following?

• A. They grant a full exemption from property taxes
• B. They offer a tax credit for farmland encroachment
• C. They are a limitation on the assessment, not an exemption
• D. They apply only to residential properties

Answer: (C)

Greenbelt laws provide tax relief by limiting the assessed value of land used for agricultural purposes for property tax purposes. Because taxes are calculated from the assessed value, this cap reduces the tax bill without removing taxes entirely or providing a credit. The goal is to keep farmland affordable and discourage premature conversion to higher-value uses. It isn’t an outright exemption, it isn’t a tax credit, and it applies specifically to farmland, not only to residential properties.