Using Bees For Agricultural Valuation
Texas Property Tax Code allows property owners who own between 5-20 acres to significantly reduce their tax burden by obtaining an agricultural land valuation which reduces the taxable land value.
The easiest and most cost effective way to obtain this “1-d-1” land valuation and save potentially thousands of dollars annually on tax liability is by simply having honey bees on your property.
Background Facts
Jan 1, 2012 the State of Texas modified the tax code (Chapter 23, Subchapter D, Sect. 23.51 (1) and (2)) to qualify beekeeping for agricultural use productivity valuation (1-d-1) if used “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”
1-d-1 valuation is simply a different type of appraisal method. Unlike residential or commercial properties which typically use market value or capitalization rate, 1-d-1 qualified land is simply valued at a much lower rate for each of the 5-20 designated acres.
In most counties, the minimum number of hives to qualify is six for the first 5 acres, usually with additional hives needed per additional qualifying acreage. Properties with a homestead may require more than 5 acres minimum to qualify. Usually 1 additional acre is required to qualify if a homestead is present on the property.
The bees can be managed in 2 ways for the purpose of 1-d-1 ag valuation:
(1) The bees can be owned/managed by the landowner personally
(2) A beekeeper can bring their own bees to the landowner's property, and manage them on the landowner's behalf.
Ag valued land is eligible for special agricultural appraisal after 5 consecutive years of documented qualifying activity (or 5 out of the last 7 years). At the start of the 6th year, the land will be appraised at a reduced value due to the agricultural and pollination activities and/or for the purpose of producing valuable beekeeping related products.
If the land has ag valuation based on another qualifying activity (such as cattle or crops) you can transition to bee colonies. It is possible to transition to managing honey bee colonies and discontinue the previous activity while retaining the land's 1-d-1 valuation as long as the previous qualifying activity was performed for at least 5 of the last 7 years.
The LAND qualifies for the ag valuation, not the landowner. Current and future property owners can benefit from any ag valuations obtained on the property. The current owner can leverage any qualifying agricultural activity performed by the previous owner.
What is included in the services?
Site Evaluation: We offer an on-site evaluation to assess whether the property is suitable for bee placement. The initial consultation includes a comprehensive customized assessment report.
Delivery and Setup of Bee hives/colonies : Once contracts are signed, we will install hives containing the required number of honey bees. We will conduct regular visits to ensure the colonies’ health. Should the colonies need to be consolidated or replaced, we will take all necessary steps to ensure the customer remains in compliance for ag valuation.
Annual contracts: We provide annual contracts for the maintainenance the requested number of beehives and colonies.
Assist in the submission of application for 1-D-1 Ag Valuation: Texas Bee Leasing Services will assist the client with submitting the required application for 1-D-1 land valuation as required by the state.
Maintain all inspection logs and other documentation for 1-D-1 ag valuation. TBLS will maintain all supporting inspection logs and reports as required by the state to verify the presence of the hives/colonies for 1-D-1 ag valuation
What is required from the landowners?
Easy access to property.
Texas Bee Services personnel will need to be able to access the bees to ensure their health and safety. We normally visit at least one a month (except during the coldest months.)
A water source on the property that will remain filled
Bees need a water source that is always accessible and never goes dry. A large water trough or natural water way is sufficient
An area that is not frequently accessed and will not be disturbed.
We always want to keep the bees and people safe. We would ask the bees to be placed a reasonable distance away from heavily trafficked areas.
No usage of pesticides, insecticides or herbicides These chemicals are lethal to bees. We are unable to place our bees on any land where these are used.
What is the cost of the services
Texas Bee Services charges $25 per hive per month to maintain the colony of bees. Additionally, the property owner will need to purchase the bees and bee hive from Texas Bee Services. We will deliver, install, and monitor the bees to guarantee their survival. We will replace any colonies that die off or abscond.
What is the process to get started?
To get started, please call 512-264-5147 to schedule an initial on-site consultation. The consultation will include a customized report detailing what options are available to place bees on your property and what types of saving are likely. We look forward to hearing from you!!