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Property tax agricultural exemption for bees

80K views 69 replies 42 participants last post by  snl 
#1 ·
I had a person call me last year and ask how many hives it would take to maintain an ag exemption on her property.

I do not know the answer.

If anyone else has some idea on this - I sure am curious too.
 
#6 ·
I *DID* get an ag exemption for my bees here in TX -- BUT:

I also provided a to scale layout of my property divided and labeled in sections. Each section has a listing of what plants I have or will add to help provide "forage" for the girls. Fruit trees, shrubs, vines, flowers, clover, buckwheat, vetch etc. were all laid out. Gardens, fields, etc.

In addition, I provided a basic marketing plan on how we will sell honey in the area, and a list of value added products (candles, soap, etc) that can be sold. The potential for future pollination contracts was mentioned.

We made a point of showing: This is a business, like a cattle rancher raising specific crosses for the beef or breeding markets, planning on selling X number of head per year.

We worked on it over 2 months.

We also have talked with out local USDA Extension Agent, and the USDA Soil and Water Conservation Agent about improvements. The Extension agent now gives out our name for swarm calls. The Conservation Agent was thrilled we weren't going to plant row crops, and wanted to improve the soils. Getting them on board our plans made the Tax Office give the go ahead.

It can be done. The Handbook for TX lists things like X number of Pecan trees per acre, or peach trees. Heads of cattle, sheep or goats per acre, etc. Since we started with 10.5 acres, none of those were feasable. But X number of hives, supported by X amount of forage that WE WILL PROVIDE was okay.

By approaching it as a business venture, it went fine. A Hobbyist asking for an ag exemption would raise their red flags.

Find a County Commisioner to buy coffee. Or the Extension Agent. Both! Chat them up. Talk about how agriculture locally will improve if bees for pollination are around. Ask how many queries the extension agent has had for LOCAL honey. But don't be surprised if they want you to have a minimum of 10 acres and 5 hives.

Good Luck
SUmmer
 
#7 ·
Thanks for all the input here. I agree that it has to appear to be more than a hobby.

Still on the other hand people here in FL plant row upon row of pine trees and get one. Pine trees are not a very engaging line of work, but if that Pine trees counts, then certainly there ought to be a way to make a bee endeavor work.
 
#8 ·
Thanks for all the input here. I agree that it has to appear to be more than a hobby.
Not necessarily...

I got a dryland agriculture exemption for the land where I have two hives. It took a conversation with the county assessor and filling out a form. On the form, I simply put "Apiary" for the agricultural use blank. I did not have to say how many hives, income generated, or anything else. Also, there aren't any reporting requirements. I will loose the exemption if I build a house or irrigate the land.

The assessor was used to these exemptions for grazing and farming but hadn't ever done one for beekeeping. In the end, my property tax on 4 acres is $5 per year rather than the normal percentage of the land value. The tax break is paying for the hobby.
 
#9 ·
Property taxes

Coming from someone who is actually in business, and who pays my FAIR SHARE of taxes to support public services that we all benefit from, I resent your attempts to avoid paying your fair share by invoking an exemption intended for someone who is dependent on bees for a living.:no:
 
#10 ·
Coming from someone who is actually in business, and who pays my FAIR SHARE of taxes to support public services that we all benefit from, I resent your attempts to avoid paying your fair share by invoking an exemption intended for someone who is dependent on bees for a living.:no:
Tom, I can agree 100% with your sentiment. But on the other hand, when the Central Appraisal District uses every gimmick they can to over access our properties (I have yet to reside in a county in Texas where it does not occur), I can't be too critical of those who have found a loophole to counteract them. It used to be that you could successfully contest them, but anymore they seem to have too much influence on the arbitrators and it is rare for them to vote against the county.
 
#12 ·
I look at this exemption as an environmental benefit. If property taxes are high owners might have to sell off some to developers to pay taxes, where lower taxes might encourage the land to stay in a more natural state. As a taxpayer, I am happy to subsidize this program. Of course, if the landowners would subsidize themselves, well, that's better yet.:)
Sheri
 
#14 ·
Actually in Texas, thats a very good way to look at it because its not really an exemption so much as a deferment. If the land is converted to other use, all the tax savings that have accrued from the time it was first designated agricultural use are rolled over into the first year and have to be paid by the current owner. When a developer looks at a parcel of land that has been designated as ag use for 40 years, the tax bill for converting it to residential use can dissuade them from purchasing it. I have seen it happen.
 
#13 ·
Well Sheri out here the counties are struggling to provide basic services. The countryside (?) is nothing but starve your horse slowly 10 acre ranchettes and they all want to call it a farm and avoid as many taxes as they can. Meanwhile even a small operator like me pays thousands of dollars each year in RE, PP, and income taxes. The environmental benefit occurs when for instance a large cattle ranch can stay in business because of Williamson act or other assistance, not from people who stretch the intent of these exemptions.
 
#17 ·
Actually in Texas, thats a very good way to look at it because its not really an exemption so much as a deferment. If the land is converted to other use, all the tax savings that have accrued from the time it was first designated agricultural use are rolled over into the first year and have to be paid by the current owner. When a developer looks at a parcel of land that has been designated as ag use for 40 years, the tax bill for converting it to residential use can dissuade them from purchasing it. I have seen it happen.
Actually, they can only go back 7 years I believe.
 
#20 ·
Re: Tax break

Sounds just like what we call the Williamson Act, although I thought that was a state measure. Lower prop tax for ag use.
Thank God for the Williamson Act or there would be a lot of Ted Turners buying up ranches that have been in the family for generations but the kids couldnt afford the "new" tax assessment after it was inherited.

I think the hard working blue collar man like you and I and of course others, should get as many tax breaks as possible. It will make up for those inner city hoodlums that sit on the couch watching government paid TV, in a government paid heated/airconditioned government subsidized house, eating goverment subsidized food and waiting for their tax free government check to come in.

Welfare is not for those in dire need anymore, its an actual "inheiritence" among inner city hoodlums. Why buy the cow when you can get the milk for free.

Im done ranting!!LOL <deep breath>
 
#19 ·
Re: Tax break

I did some research and it varies by county in Florida. Row crops and nurseries are one acre minimum plus one acre for the residence.
"Any residence on the property causes one acre to be removed from the agriculture classification. This acre is assessed at the current market value and is referred to as a home site.
For a bee/honey operation you must be a registered Florida Beekeeper and have your own, or have access to, honey extracting equipment, hive building and repair facility, etc."
One acre homestead and the rest "greenbelt" for apiculture.
 
#67 ·
Re: Tax break

For a bee/honey operation you must be a registered Florida Beekeeper and have your own, or have access to, honey extracting equipment, hive building and repair facility, etc."
One acre homestead and the rest "greenbelt" for apiculture.
not exactly correct a beekeeper can lease someones 5 acres of land and the land owners property can be taxed as ag
 
#24 ·
Re: Tax break

The Texas Apiary Inspector is going to be at our next local meeting for Metro Beekeepers, I'm hoping to get some questions answered there. I need a lot more land for an exemption to be worth much though. Taxes on the lot where I have the bees come to about $70 a year.
 
#25 ·
Re: Tax break

I have a commercial beekeepeer with 100+ hives on my property in CA and it does count for the Williamson Act. However, the Act allows counties to come up with their own criteria for what they'll accept, and most seem to be cracking down substantially in an effort to boost revenues.
 
#27 ·
Re: Tax break

One of the reasons an Ag Exemption is so important in TX is this: TX has no Personal Income Tax. But we do have some very high Property Tax. Anything over 10 acres without an Ag Exemption will most likely be taxed as Residential or Commercial rates. Ouch!

The 2 acres of "Homestead" that covers the house, garage, and shop are taxed differently than the other 20 with the Ag exemption. I was faced with having to pay the regular rate on ALL 22 acres without the Ag exemption. It had been previously used for a Hay lease, which I ended when I bought the property. First, I didn't have the equipment to make hay myself. Two, the person who had the hay lease was an enthusiastic sprayer of Round up and fertilizers, and I didn't want him spraying anything else.

I pay taxes on my property, on the honey I sell, and on the candles I make and sell. I pay tax on the equipment I use for the bees - like boxes and extractor, etc. I provide the required inventory every year of what I have on hand. I update my progress with plantings.

I treat it like a business because it IS a business. I run it as such. Now, is it a business that allows me to be totally self supporting? Not yet, alas. Not on the heels of some of the worse droughts in TX history. But I am working towards that goal, if it's attainable. I answer honestly any and all questions from the county and when they stop by, I drop everything, make a fresh pot of coffee, pull out the Kolaches (Czech sweet rolls) and give them a tour, showing them anything they want to see. I speak when invited to the Rotary Club, Lion's Club, 4-H, and classrooms. I answer swarm calls and the occasional cut out.

Based on my actions, my willingness to share, my forth-rightness, I am treated with courtesy and respect by county officials. They know I am not playing games, nor am I making money hand over fist. They do what they can to help me, and give out my name when people ask for local honey, need a swarm caught, etc.

Sometimes when you put out good it DOES come back to you. Honesty is the best policy.

Summer
 
#28 ·
Re: Tax break

Agriculture Exemptions will vary from state to state; in Texas you CAN get a property tax exemption for beekeeping. You must meet several criteria to get it, and there may be some discrepancies between the state requirements and your local county; see your local county assessor to get clarification.

For Texas residents, Google "Texas Apiary Inspector" for the instructions to apply for the exemption.
 
#30 ·
Re: Property taxes

I own several hundred acres of land in West Texas. If I had to pay full blown property taxes on my ranch, I could not afford to own it. Ag exempt taxes save me about 24 grand a year. I keep a herd of 38 to 40 head of black angus cattle that I use for my ag exemption. Someone with 30 or 40 hives of bees could probably make as much profit as I do on my cows. Year in and year out, a couple of hundred bucks per mother cow is about the norm. From a common sense point of view, I think bees should qualify land for ag exemption.
 
#32 ·
Re: Property taxes

Here here I agree. It is not my job to fund the government. It is my job to take care of my family and Less taxes make it easier. Everyone that can take advantage of the AG rules I encourage to take advantage of them. With the extra money buy more bee's.

"He should just write [the government] a check and shut up," the New Jersey Governor and one-time rumored presidential candidate told CNN's Piers Morgan.
 
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