Agricultural Exemption with Honey Bees
Agricultural valuation, more commonly known as “agriculture exemption,” can save you thousands of dollars on your Texas property taxes. Though it’s referred to as an “exemption,” agricultural valuation is not actually a tax exemption. It is alternate assessment of the land’s value based on agricultural production rather than market value. If you have between 5 and 20 acres of land, you may qualify for agricultural valuation by having honey bees on your land!
From the beginning of time, honey bees play an integral role in agriculture, pollinating three-fourths of the crops we consume. In 2012 Texas began recognizing honeybees as a part of agriculture and granting agricultural tax valuations to land that contains managed honey bee hives.
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.”
Valuation is determined slightly differently by each county. Always check details of your county at your central appraisal district office and make sure you are staying current with them from year to year. Generally there are three conditions to meet.
Acreage To be eligible for agricultural valuation your property must be at least five acres, but less than twenty. If you have a home on that property, most counties will consider one acre as your homestead, meaning you will need six acres to qualify.
Understand that while you are waiting for the agricultural valuation on your additional acres, you will not be able to claim the homestead exemption.
Intensity of Use Six hives is the minimum number of honey bee colonies for the first five acres. After that, depending on the county, you will need to add one colony for every 1.5-2.5 acres.
Note, honey bee colonies are socio-biological units of bees consisting of a single queen, hundreds of drones, and 20,000-80,000 workers. In terms of hives, one colony could be a single nuc, a hive box, or stack of hive boxes. Bee colonies may leased or owned by the property owner for agriculture valuation.
History of Use You must establish a five year history of qualifying agricultural use and have the documentation to show you are meeting the letter of the law, “for pollination or for the production of other tangible products having a commercial value.”
Take picture of you hives and track activity in a journal. Keep receipts. You may register with the Texas Apiary Inspection Service to establish proof, though is not required.
Additionally be sure you are meeting any requirements set by your country appraisal district. These might include planting of flowering vegetation, being near crops, providing water, living on the land, or submitting a landscape plan. Be sure to follow the rules for maintaining hives.
Tax Savings
Though it will take a few years to receive the agricultural valuation, the long-term savings is tremendous. The exact amount you save will depend on the county and acreage you have. Landowners with agricultural valuations have reported a savings of thirty percent all the way to ninety percent! With this type of savings, your initial investment in your honey bee colonies will easily be recovered within one or two years, if not even sooner.
Furthermore, agricultural valuation is a benefit when you sell your land. Buyers seek land that already has agricultural valuation, as the designation stays with the land rather than the owner as long, as that agricultural activity is maintained.
