What role do bees play in agriculture and the ecosystem?
Bees are crucial for pollination, which is a fundamental process in the life cycle of many types of plants, including crops. They also contribute to biodiversity and the health of natural ecosystems.
Does the ag exemption include my house or barn?
Typically, the agricultural exemption applies only to the portion of your property that is used for agricultural purposes. The house, barn, or any other structures not be included.
Is the five out of seven years rule always required?
Yes, in Texas, the land must have been used for agricultural purposes for at least five of the past seven years to qualify for the exemption. Inside a city limits the rules change. You need five out of five years to qualify.
If I am over 65, what else is important to consider before working toward ag valuation?
If you are over 65 and you have a homestead exemption on this property, you may already qualify for a tax ceiling which could provide significant property tax relief. It’s important to compare the benefits of the agricultural exemption with those of the over-65 homestead exemption. It is possible to lose some of the over 65 advantages when property is‘re-set’ with agricultural appraisal. Consult the appraisal district or BeePeaceful Colony Management before starting the process if you are over 65 with a homestead.
When do I have to have bees on my land in order to have a year qualify for ag?
It is best practice to have bees on your land before the 1-d-1 application deadline of April 30th.
When do I have to send in my application for agricultural valuation?
The deadline for submitting an application for agricultural valuation is April 30th. You can file late until mid-summer, but there is a penalty for late filing.
Do I have to apply every year?
Once your land has been granted agricultural valuation, you do not need to reapply each year unless the use of the land changes or the appraisal district sends a letter asking for a reapplication.
How will I know if my application has been approved or denied?
The appraisal district will send you a notice of denial by certified mail. You are unlikely to get an approval notice. If you don’t get a denial, you are approved. If your application is denied, the notice will include information on how to protest the decision. Always protest a denial.
Is this exemption available for residential land?
Yes. The exemption is available for land used primarily for agricultural purposes. If a portion of the land is used for buildings, that portion will be taxed at market value.
If I have a house on the land, how does that affect the acres needed?
The presence of a house on the land does not typically affect the acreage requirements for the agricultural exemption. However, the land occupied by the house and its immediate yard would not be included in the agricultural valuation.
Could I use bees to reduce my taxes on commercial property?
Any land is available for agricultural appraisal as long as its primary use is for agriculture. As an example, an office building parking lot would not qualify, but if on the same property there was 10 acres that was obviously not used for business, that acreage might qualify as ag land.
Is the agricultural appraisal value the same for all land and all types of farm activity?
No, the agricultural appraisal value can vary based on the type of agricultural activity and the productivity of the land.
What are the categories of land that are used in agricultural appraisal?
The primary categories listed in Texas agricultural law are irrigated cropland, dry cropland, improved pasture, native pasture, orchard, and waste.
How will agricultural appraisal affect the sales price of my home or property?
Agricultural appraisal will likely significantly increase resale price. The sales price is determined by the market, a buyer will usually pay a higher price for the advantage of the annual tax savings and the property will also have the probability of selling faster.
Can I write off the cost of beekeeping on my IRS taxes?
Because the agricultural exemption increases the value of your land, you may be able to deduct expenses related to beekeeping on your federal income taxes. It’s best to consult with a tax professional for advice specific to your situation.
Are the property tax saving that I am working toward taxable by the IRS?
Property tax savings from an agricultural exemption are not typically considered taxable income by the IRS. However, it’s always a good idea to consult with a tax professional for advice specific to your situation.
If my land is qualified as an apiary, can I get a sales tax exemption number from the Texas State Comptrollers office?
You may be eligible for a sales tax exemption on certain purchases related to your beekeeping operations. You would need to apply for a sales tax permit from the Texas Comptroller’s office.
If I have a sales tax number does it mean that I don’t have to pay sales tax anymore?
No. You can only use a sales tax exemption on items used primarily for agriculture.
How can BeePeaceful Colony Management help me with my 1-d-1 application?
Some of the questions on the application are daunting. BeePeaceful Colony Management can provide expert guidance and support with the 1-d-1 application process. They can also help ensure that your beekeeping operations meet the requirements for agricultural valuation.
Can BeePeaceful Colony Management help me convert to wildlife management?
BeePeaceful Colony Management does not create wildlife management plans, but can refer you to businesses that build qualifying plans.
Why would I want to convert to wildlife management?
Converting to wildlife management offer the same tax benefits for less expense and the practices for small acreage are easy for land owners to do themselves.
Will BeePeaceful Colony Management keep bees for me even if I don’t want to work toward wildlife management?
Yes. BeePeaceful Colony Management’s services typically include maintaining bee colonies for clients, regardless of whether the client is working toward wildlife management.