Judges: KENNETH G. OERTEL
Agency: Department of Revenue
Latest Update: May 14, 1980
Summary: Land was purchased for more than three times its appraisal value creating presumption it was not intended for agricultural use. Deny agricultural classification for this property.
75-1426.PDFSTATE OF FLORIDA
DIVISION OF ADMINISTRATIVE HEARINGS
EARL E. FISHER, c/o )
BIGELOW, JR., )
)
Petitioner, )
)
vs. ) CASE NO. 75-1426
)
DEPARTMENT OF REVENUE, )
)
Respondent. )
)
RECOMMENDED ORDER
This matter came up for hearing before the undersigned hearing officer on December 3, 1975, at 9:30 a.m. in Tallahassee, Florida. On behalf of the parties, the following appearances were made:
APPEARANCES
For Petitioner: Ronald C. LaFace
101 East College Avenue Tallahassee, Florida 32302
For Respondent: Patricia S. Turner
Assistant Attorney General Department of Legal Affairs The Capitol
Tallahassee, Florida 32304
This hearing was a challenge by the Department of Revenue of the decision of the Lee County Board of Tax Adjustment granting the Petitioner an agricultural classification in opposition to the recommendations of the Lee County Property Appraiser. The central issue was whether the property was being used for a bona fide agricultural purpose as defined in Chapter 193, F. S., and was therefore entitled to an agricultural assessment. Chapter 193.122, F. S., requires that the hearing conducted on behalf of the Department of Revenue's position be limited to the record below, created at the hearing conducted by the Lee County Board of Tax Adjustment. That record was before this hearing officer and consists of a 15 page document.
The crucial facts concerning this land are meagre as the hearing before the Lee County Board of Tax Adjustment consists of only a page and a half of transcribed testimony. However, several crucial facts are not disputed. The land in question consists of 114 acres in Lee County which was purchased by the Petitioner in 1971 for $500,000. The land is presently under a year-to-year agricultural lease which gives a return of $3,000 a year. Presently the land is being farmed. There is some mention in the transcript that there are tentative plans to eventually construct a shopping center on this property and that Mr. Fisher was a trustee for other owners of this tract. It also appears from this transcript that the surrounding lands are appraised at $4,000 an acre.
Section 193.461(3)(b) sets out the guidelines for the classification of agricultural lands. That subsection contains a requirement that the lands be used for bona fide agricultural purposes.
After reviewing this statute and the evidence contained in the record of the hearing before the Lee County Board of Tax Adjustment, it cannot be stated that the lands in question are being used for bona fide agricultural purposes. This land was purchased for $500,000 in 1971, and yet is being leased for only $3,000 a year which is a return of less than one percent a year. There must be a reasonable expectation of some profit or return on an investment to satisfy the commercial aspects of this definition in Section 193.461(3(b) A return of six-tenths of one percent is not sufficient to support such a finding.
5. Section 193.461(4)(c), F. S., states:
Sale of land for a purchase price which is three times or more the agricultural assessment placed on the land shall create a presumption that such land is not used primarily for bona fide agricultural purposes. Upon a showing of special circumstances by the land owner demonstrating that the land is to be continued in bona fide agriculture, this presumption may be rebutted.
That subsection is applicable to the facts in this case and the presumption created by this statute has not been rebutted by the land owner. In fact, the only evidence in the petition indicates that the land was purchased with the intention of eventually building a shopping center on the site. It is therefore,
RECOMMENDED that the Department of Revenue enter a final order in this matter overturning the decision of the Lee County Board of Tax Adjustment and denying the agricultural classification of the property in question.
DONE and ORDERED this 30th day of December, 1975.
KENNETH G. OERTEL, Director
Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304
(904) 488-9675
COPIES FURNISHED:
Ronald LaFace
101 East College Avenue Post Office Box 1752 Tallahassee, Florida 32302
Patricia S. Turner Assistant Attorney General Department of Legal Affairs The Capitol
Tallahassee, Florida 32304
Docket for Case No: 75-001426
Orders for Case No: 75-001426
| Issue Date |
Document |
Summary |
|
Jan. 31, 1977 |
Agency Final Order
|
|
|
Dec. 30, 1975 |
Recommended Order
|
Land was purchased for more than three times its appraisal value creating presumption it was not intended for agricultural use. Deny agricultural classification for this property.
|
