What do I need to qualify for an Agricultural Exemption on my land?
If you own between 5 and 20 acres in Texas, you can save substantial amounts on your annual property taxes by keeping honeybees on your land.
- This applies regardless of whether the landowner directly manages honey bee colonies on the property or if a beekeeper handles them, as the qualification is linked to the land, not the owner. The land must have been used for agricultural purposes for at least five out of the last seven years.
- If your land doesn't have a current AG Exemption, you will first need to document 5 consecutive years (or 5 out of 7 years) of agricultural activity on your land. Then, in Year 6, you can get a tax reduction with the new land valuation.
- If the land already benefits from "Ag Valuation" due to another qualifying activity, such as livestock management, it can switch to beekeeping and maintain the special valuation. This is because it still meets the requirement of five out of the last seven years of qualifying agricultural activity. Since it's the land that qualifies, not the landowner, new owners can also benefit from existing agricultural valuations or past qualifying activities performed by previous owners.
Additional qualifying requirements:
- The property must be suitable for honey bees and beekeeping.
- Open Hands Honey will need unrestricted access to the bees
- A vehicle must be able to access the area where the hives re located and park no further than 20 yards from the hives location.
Open Hands Honey retains the rights of ownership to the bees, the equipment, and the products of the hives.
Texas Tax Code:
Chapter 23, Subchapter D. Appraisal of Agricultural Land Sec. 23.51 - (2) "Agricultural use" includes but is not limited to the following activities: ...."The term also includes the use of land to raise or keep bees for pollination or for the production of human food or other tangible products having a commercial value, provided that the land used is not less than 5 or more than 20 acres."
How much can I save?
Savings on property taxes can vary based on county productivity values, tax rates, and eligible land area, potentially amounting to thousands of dollars annually. Additionally, "Ag" land tends to have higher resale value. Land under 1-d-1 Open Space Land Valuation for at least one year can convert to Wildlife Management Valuation regardless of size. For instance, a Hays County customer saved over $10,000 yearly on their 7-acre lot, a nearly 90% decrease despite having a homestead. Such substantial savings prompt some landowners to pay up to 30% of their annual savings to maintain qualification with a beekeeper's assistance.
Iād like to move forward. What are my next steps?
Landowners often opt for beehive rental and consulting services over managing their own due to the daunting nature and costliness of beekeeping, with colony loss rates around 50%.
LEASING HONEYBEES
An effective option is to lease bees from a beekeeper who can:
ā¢ Bring their own hives and bees to your property
ā¢ Set up your apiary
ā¢ Manage all aspects of beekeeping
ā¢ Replace lost colonies at their expense
SELF-MANAGED
Motivated individuals may choose to:
ā¢ Purchase equipment and bees independently
ā¢ Directly oversee colony management
ā¢ Replace colony losses
ā¢ Maintain documentation