"Special Use Land Valuation" with bees
How Ag. Exemption works to save you money
Leasing Bees for 1-d-1 Special Land Valuation, aka "Ag. Exemption"
01. Qualifying for Special Land Valuation
Agricultural Use: The land must primarily be used for agricultural purposes, including raising bees for honey production or other bee-related products.
Degree of Intensity: The beekeeping operation must be conducted at a level of intensity generally accepted in the area. In other words, a certain number of colonies is required depending on the acreage valued.
History of Use: The land must have been utilized for agricultural purposes for five out of the past seven years, which can encompass beekeeping or other agricultural activities.
02. The Application Process
Application: Submit an application to the appraisal district in your county between January 1st and April 30th.
Download Form 50-129 (Application for 1-d-1 Agricultural Use Appraisal) from the Texas Comptroller website (click here) or from your specific County Appraisal District. Click here to download our PDF copy of the form Documentation: Provide supporting documentation for your agricultural use, such as evidence of bee ownership (purchase receipts), records of honey production or other bee-related income, photographs of your beekeeping operation, and any other relevant documentation your CAD may request *We find our clients rarely are requested to show any proof other than the hives onsite. CAD offices are very busy and Google Earth Images seem to suffice.
Download Form 50-129 (Application for 1-d-1 Agricultural Use Appraisal) from the Texas Comptroller website (click here) or from your specific County Appraisal District. Click here to download our PDF copy of the form Documentation: Provide supporting documentation for your agricultural use, such as evidence of bee ownership (purchase receipts), records of honey production or other bee-related income, photographs of your beekeeping operation, and any other relevant documentation your CAD may request *We find our clients rarely are requested to show any proof other than the hives onsite. CAD offices are very busy and Google Earth Images seem to suffice.
03. Appraisal and Tax Valuation
Market Value of Your Land: Higher market values usually yield greater tax savings due to the differential between market and agricultural productivity values.
Productivity Value: The appraisal district will determine the productivity value of your land based on the typical income generated from beekeeping, which is usually significantly lower than the market value.
Tax Calculation: Property taxes will then be calculated based on this lower productivity value, offering considerable savings compared to market value assessments.
04. Maintaining the Appraisal
Annual Reporting: Annual reapplication is not required. You may need to provide updates to confirm ongoing agricultural use.
Change of Use: If the land’s use changes from agriculture, you may be subject to a 3-year rollback tax, reflecting the difference between taxes paid under the 1-d-1 special land appraisal and those based on market value. Switching your property use designation from agriculture to commercial use is an example of this change.
*Penalties in the form of "rollback taxes" are based on the five tax years preceding the year of change. Keep this in mind when selling your land. Not only may ag. exemption save the new landowner money, but continuing the exemption may keep you from paying the rollback taxes.
*Penalties in the form of "rollback taxes" are based on the five tax years preceding the year of change. Keep this in mind when selling your land. Not only may ag. exemption save the new landowner money, but continuing the exemption may keep you from paying the rollback taxes.
05. Important Considerations
Minimum Acreage: For beekeeping to qualify, the land must be used to the degree of intensity generally accepted in the area. A range of 5 to 20 acres is the standard: 6 colonies for 5 acres, with 1 more colony per 2.5 additional acres (can vary). * If you live on the property, you need 6 acres of land! Why? If you file for a Homestead Exemption on your property since your home is onsite, your CAD will not include one acre of your total land for Special Use Valuation, or "Ag. Exemption" resulting in your minimum total acreage required being 6 acres rather than 5 acres.
Changing Agriculture Use Type: Land managed for agricultural use may be changed from one livestock category into beekeeping the proceeding year. There may be a change in the tax deduction value and proof you now have bees. * This is very simple and straightforward and is common when getting into bees for ag.!
Bees are a good fit for many property owners to demonstrate "agricultural use" and utilize the 1-d-1 Special Land Valuation. Learn more about saving money on your property taxes with an "Ag Exemption" and request a consultation with us. We can help you save!
It gets better- you can also make MAKE MONEY by selling the HONEY!
Submit our Quick 5-Question Form and get on the path toward tax savings! It also includes a summary document of our Colony Care Agreement and pricing.
It gets better- you can also make MAKE MONEY by selling the HONEY!
Submit our Quick 5-Question Form and get on the path toward tax savings! It also includes a summary document of our Colony Care Agreement and pricing.
Request a call, text or email:
If you qualify there's no better time to start than now! (Deadline is May 1st). You only need a few hives to begin. Since you need a few years of "ag. productivity" before your property valuation appraisal is switched from market-based to productivity-based, don't wait to begin to show a record of agricultural activity on your land- get bees this season! Fill out our form and we'll contact you! You can also see our cost of service.
You can see our bee colonies from satellite!
What if you could save money on taxes, create a commodity by harvesting honey from your property and help out Mother Nature? Well that just sounds like "the bees knees."
Your property could be home to honey bees too!