Frequently Asked Questions
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Texas 1-D-1 Ag Exemption
Texas Bee Services offers bee placement and management for 1-D-1 agricultural valuation (also known as “Agricultural Exemption”). By using honey bees to obtain agricultural valuation on their property, land owners can save substantial amounts of money on taxes. Here are some frequently asked questions regarding the Texas 1-D-1 agricultural valuation tax policy.
Can I get agricultural valuation on my property using honey bees?
Yes. Texas Property Tax Code Chapter 23, Subchapter D, Section 23.51 (1) and (2) states that bees qualify as a means to obtain agricultural valuation. “The term [agricultural use] 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 money will I save in taxes?
The tax savings on agricultural lands varies based on the county and on the specific agricultural usage. The higher the market value of the property, the more you can expect to save in taxes. We have seen savings between 80 and 95% of the existing tax obligations. Additionaly, the property resale value typically increases significantly since properties with agricultural valuation are in high demand. Please refer to our YouTube video describing how you can get a rough approximation of what your tax savings will be.
If I have my ag valuation through a different ag activity, can I move to beekeeping?
Yes. You are able to move to beekeeping if you have an established history using an alternative approved agricultural activity. You need to file a form 50-129 with your county by April 30th of the year you wish to move over to bees as your ag activity. Be certain to include all relevant documentation proving that you will purchase the bees, hives, equipment etc and will be in compliance with all county requirements. If you are having the bees professionally managed, provide the contract with the beekeeper.
We strongly recommend contacting and meeting with the agricultural inspector for your county to ensure you are in compliance and prevent any lapse in agricultural valuation
How many colonies will I need?
Again, this varies across counties, but you will almost always need at least 6 and rarely more than 13. There is normally a gradual build up such as “6 for the first 5 acres and 1 for each additional 2 acres” or something like that. The Texas Beekeepers Association maintains a list of honeybee density requirements for each Texas county that can be found here
Do I need to manage the colonies of bees or can someone do it for me?
In Texas, either way is acceptable. You can manage the bees or have someone else manage them for you. Additionally, you can request a beekeeper to manage bees you own, or you can lease the bees from a beekeeper where they can manage their bees for you at your property.
When do I need to apply for a 1-D-1 ag valuation?
In Texas, you have to apply by April 30th to be eligible to use that year towards your 5 year requirement
What happens if a colony of bees dies?
The county understands that bee colonies can die. It’s a natural occurrence. As long as we get a new colony on the property in a reasonable length of time, you will not be penalized.
Are there any requirements for selling honey or bee related products?
No. The tax code only requires keeping bees “… for pollination or for the production of human food or other tangible products having a commercial value” This means you don’t have to sell anything to qualify. You can keep the bees for pollination or for the purpose of food production. However you are under no obligation to sell any of the honey or ‘other tangible products.’ You can consume it or gift it.
How long does it take to get approved for an ag valuation on my property?
You need to have proof of agricultural usage for 5 consecutive years, or 5 of the past 7 years to be eligible. You apply during year 1 and then again at year 6. When you re-apply and receive ag valuation in January of the 6th year, your property tax for that year will be assessed based on the agricultural valuation.
What is the minimum/maximum acreage I need to be eligible for an ag valuation using bees?
Land is eligible for an agricultural valuation only if it is primarily used for agricultural purposes. Land containing a house or other structure is not eligible. Texas allows between 5 and 20 open land/non-homesteaded acres to be taxed at an agriculural valuation when using bees as an activity.
A homestead will normally consume an acre footprint. So if there is a home on the property, you can get an ag valuation on between 6 to 21 acres. If there is no home, you can obtain an ag valuation on between 5 to 20 acres.
If a property is over 20 ‘ag-eligible’ acres, the remaining land can obtain an ag valuation using an alternate approved activity.
I just bought a property that has ag valuation using bees. Do I need to do anything?
You need to re-apply for the 1-d-1 agricultural valuation using a form 50-129 by April 30th. The property will retain the valuation, but the exemption must be in your name. Ensure you remain compliant with the county’s requirement for the number of hives.
Retain all documentation and receipts for all purchases related to the bees and include it with the 50-129 application. For instance, if the previous owner did not leave the bees on the property, provide receipts or documentation proving you have purchased the bees/hives/equipment. If you will have the bees managed, provide a copy of the leasing or management contract.
Meet with the county agricultural inspector as soon as possible to advise him or her that you have acquired the property and to ensure that you are in compliance so that there is no interruption in the agricultural assessment.