Frequently asked questions
Yes! Well, it depends. If you have between 5 and 20 acres of residential or rural land in Texas, you might meet the criteria for a special "Open Space" land valuation by raising bees on your property, which can qualify you for substantial savings on your annual property taxes.
- If you have between 5 and 20 acres that meet the criteria outlined in the Texas Property Tax Code Chapter 23, Subchapter D, Sect. 23.51 (1) and (2), and also meets the specific land valuation rules set by your county's Central Appraisal District (CAD), then you may be eligible for a 1-d-1 Open Space special land valuation, commonly referred to as "Ag Exemption" or "Ag Valuation". This provision applies regardless of whether the landowner directly owns and oversees the honey bee colonies on the property or if a beekeeper brings in and/or manages the landowner's colonies. This qualification is linked to the land itself rather than the specific landowner. Qualified open-space land refers to land primarily dedicated to agricultural use, following the customary intensity of agriculture generally acknowledged in the area. Additionally, this land must have been primarily used for agricultural purposes for at least five (5) of the preceding seven (7) years.
- Land utilized "to raise or keep bees for pollination or for the production of human food or other tangible products having a commercial value" falls within the specific criteria related to farm and ranch use. After Beekeeping activities are held for 5 consecutive years (or 5 out of 7 years), the land becomes eligible for a special agricultural appraisal. This means that from the 6th year onwards, the land will be assessed at a reduced value due to its involvement in agricultural practices, pollination activities linked with beekeeping, and/or the production of valuable beekeeping-related goods.
- Under the Texas Tax Code, each local appraisal district sets its individual standards and prerequisites for evaluating beekeeping properties. In many counties, a minimum of six (6) hives is typically required for the initial 5 acres to qualify, with additional hives potentially needed for each further qualifying acreage (up to 20 acres). Properties with a homestead might need more than the standard 5-acre minimum for eligibility, often requiring an additional acre, though this requirement isn't universal.
Savings for Ag valuation is different for every property and depends on various factors such as the county's productivity values, tax rates, and the extent of qualifying land. Nevertheless, if you have high property taxes now and your land qualifies, you will be very happy with the savings! The average property tax deduction we see with our clients is around 80%.
In Texas you must have between 5 and 20 acres to qualify for an Ag Exemption. There is a Homestead rule which states that 1 acres is held out and reduces the available acreage eligible for valuation. For example a 6 acre property with a homestead will have 5 qualifying acres for Ag Exemption. However, a 5 acre property with a homestead will only have 4 qualifying acres, so therefore will not qualify for the Ag Valuation. Some counties might waive certain situations, so it's always good to discuss directly with your local CAD.
Give us a buzz and find out how Keepers Harvest can still save you money on your property taxes without having and Ag Exemption.
If your land doesn't currently hold an "AG Exemption," you'll be required to establish and document five years of ongoing agricultural/beekeeping activities, either maintained by yourself OR a beekeeper. Only after this period can you obtain your revised land valuation in Year 6 and experience the subsequent reduction in taxes. If you know your property does not currently hold an Ag Exemption, we are here to handle the entire process for you to get you qualified.
Resources
Interested in learning more about your specific county's 1-d-1 Open Space and Ag Exemption process? Here are some helpful links below for the counties that we service. Please reach out to us with any questions you have!