Texas 1-D-1 Ag Exemption
Texas Bee Services offers 1-D-1 agricultural valuation (also known as an “Ag Exemption” or “Agricultural Exemption”) using bees. We will lease our bees or manage the owner’s bees. By using honey bees to obtain agricultural valuation on their property, owners can save substantial amounts of money on taxes. Here are some frequently asked questions regarding Texas agricultural exemption 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.
If I have my ag valuation through a different ag activity, can I move to beekeeping?
Yes. You are immediately able to move to beekeeping if you have an established history using an alternative approved agricultural activity.
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 denstiy 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 he can manage them 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. you don’t have to sell honey or hive products to qualify. You simply have to produce food or other tangible products having a commercial value. The key word is “produce”. 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 for ag valuation at the start of the 6th year, you’ll be assigned an ag valuation and that year, your property will be taxed at the reduced rate.
What is the minimum acreage I need to be eligible for an ag valuation using bees?
When using bees for ag valuation, you need a minimum of 5 non-homesteaded acres. You can apply up to 20 non-homesteaded acres. A homestead will normally consume an acre footprint. So if there is a home on the property, you’ll need a minimum of 6 acres.