A BILL TO BE ENTITLED
AN ACT to provide present‑use value tax benefits for beekeeping operations.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑277.2 reads as rewritten:
"§ 105‑277.2.  Agricultural, horticultural, and forestland – Definitions.
The following definitions apply in G.S. 105‑277.3 through G.S. 105‑277.7:
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(6)	Sound management program. – A program of production designed to obtain the greatest net return from the land consistent with its conservation and long‑term improvement. For agricultural land used for beekeeping operations, the sound management program must include a determination by the Department of Agriculture and Consumer Services providing the density of bee hives appropriate for the land for which the tax benefit is claimed.
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SECTION 2.  G.S. 105‑277.3 reads as rewritten:
"§ 105‑277.3.  Agricultural, horticultural, and forestland – Classifications.
(a)	Classes Defined. – The following classes of property are designated special classes of property under authority of Section 2(2) of Article V of the North Carolina Constitution and must be appraised, assessed, and taxed as provided in G.S. 105‑277.2 through G.S. 105‑277.7.
(1)	Agricultural land. – Individually owned agricultural land consisting of one or more tracts, one of which satisfies the requirements of this subdivision. To
 meet the income requirement, agricultural land must, for the three years preceding January 1 of the year for which the benefit of this section is claimed, have produced an average gross income of at least one thousand dollars ($1,000). Gross income for agricultural land used for purposes other than beekeeping operations includes income from the sale of the agricultural products produced from the land, any payments received under a governmental soil conservation or land retirement program, and the amount paid to the taxpayer during the taxable year pursuant to P.L. 108‑357, Title VI, Fair and Equitable Tobacco Reform Act of 2004. Gross income for agricultural land used for beekeeping operations includes income from the sale of products of the hive other than honey and from pollination rentals.
The following requirements apply for agricultural land:
a.	For agricultural land used as a farm for aquatic species, as defined in G.S. 106‑758, the tract must meet the income requirement for agricultural land and must consist of at least five acres in actual production or produce at least 20,000 pounds of aquatic species for commercial sale annually, regardless of acreage.
b.	For agricultural land used as a farm for beekeeping operations, the tract must meet the income requirement for agricultural land, must house at least 50 individual hives, must conform to the density requirements set forth in the sound management plan for the land, and must consist of at least five acres in actual production used throughout the year for beekeeping in conjunction with commercial or noncommercial agricultural, horticultural, or forestland use.
c.	For all other agricultural land, the tract must meet the income requirement for agricultural land and must consist of at least 10 acres that are in actual production. Land in actual production includes land under improvements used in the commercial production or growing of crops, plants, or animals.
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(f)	Sound Management Program for Agricultural Land and Horticultural Land. – If the property owner demonstrates any one of the following factors with respect to agricultural land or horticultural land, then the land is operated under a sound management program:
(1)	Enrollment in and compliance with an agency‑administered and approved farm management plan.
(2)	Compliance with a set of best management practices.
(3)	Compliance with a minimum gross income per acre test.
(4)	Evidence of net income from the farm operation.
(5)	Evidence that farming is the farm operator's principal source of income.
(6)	Certification by a recognized agricultural or horticultural agency within the county that the land is operated under a sound management program.
Operation under a sound management program may also be demonstrated by evidence of other similar factors. As long as a farm operator meets the sound management requirements, it is irrelevant whether the property owner received income or rent from the farm operator.
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SECTION 3.  This act is effective for taxes imposed for taxable years beginning on or after January 1, 2017. If agricultural land used as a farm for beekeeping operations has met the requirements of G.S. 105‑277.2 and G.S. 105‑277.3, as amended by this act, for the preceding three years, the agricultural land shall be assessed at present‑use value for the 2017 taxable year.