12D-5.001 Agricultural Classification,
Definitions.
(1) For the purposes of Section 193.461, Florida Statutes,
aricultural purposes does not include the wholesaling, retailing
or processing of farm products, such as by a canning factory.
(2) Good faith commercial agricultural use of property is
defined as the pursuit of an agricultural activity for a reasonable
profit or at least upon a reasonable expectation of meeting
investment cost and realizing a reasonable profit. The profit
or reasonable expectation thereof must be viewed from the
standpoint of the fee owner and measured in light of his investment
Specific Authority 195.027(1), 213.06(1) FS. Law Implemented
193.461, 213.05 FS. History-New 10-12-76, Formerly 12D-5.01.
12D-5.002 Purchase Price Paid as a Factor
in Determining Agricultural Classification.
(1) The property appraiser may determine that the "purchase
price paid" for land is inconsistent with agricultural
use. A purchase price in excess of the agricultural assessment
can be indicative of lack of a "good faith commercial
agricultural use" since the agricultural assessment is
basically derived by a capitalization of the income to be
produced by land in such a use and thus approximates the amount
that could be invested consistent with a reasonable return.
(2) Additionally, should the purchase price paid exceed
the agricultural assessment by three or more times, a presumption
that the land is not used primarily for good faith commercial
agriculture purposes is created by Section 193.461(4)(c),
Florida Statutes. The mere filing of a return is not sufficient
to overcome this presumption created by the purchase price.
Instead, the landowner must make a showing of special circumstances
such as, but not limited to: 1) need of the acquired property
to expand a previously owned agricultural operation; 2) need
of the acquired property to facilitate proper drainage of
a previously owned agricultural operation; 3) need of the
acquired property for ingress or egress related to a previously
owned agricultural operation; 4) the need of the acquired
property to reestablish an agricultural operation after the
owner's previous agricultural operation was terminated due
to eminent domain proceedings or other similar circumstances;
and 5) when the purchase price includes payment for other
than real property, such as improvements on or to the land
or deferred income, e.g., forestry.
(3) Furthermore, the presumption created by Section 193.461(4)(c),
Florida Statutes, may be defeated by overcoming the appraiser's
presumption of correctness as to the agriculturally classified
value and demonstrating that the purchase price paid was not
three or more times what the agriculturally classified value
should be. However, such a showing, while defeating the presumption,
would not prevent a denial of the classification if the purchase
price paid was, nonetheless, indicative of a lack of good
faith commercial agricultural use.
Specific Authority 195.027(1), 213.06(1) FS. Law Implemented
193.461, 195.032, 213.05 FS. History-New 10-12-76, Amended
11-10-77, Formerly 12D-5.02.
12D-5.003 Dwellings on Agriculturally
Classified Land.
12D-5.003 Dwellings on Agriculturally Classified Land. The
property appraiser shall not deny agricultural classification
solely because of the maintenance of a dwelling on a part
of the lands used for agricultural purposes, nor shall the
agricultural classification disqualify the land for homestead
exemption. So long as the dwelling is an integral part of
the entire agricultural operation, the land it occupies shall
be considered agricultural in nature. However, such dwellings
and other improvements on the land shall be assessed under
Section 193.011, Florida Statutes, at their just value and
added to the agriculturally assessed value of the land.
Specific Authority 195.027(1), 213.06(1) FS. Law Implemented
193.461, 213.05 FS. History-New 10-12-76, Formerly 12D-5.03.
12D-5.004 Other Factors that May Become
Applicable to Classification of Agricultural Lands.
(1) Other factors enumerated by the court in Greenwood v.
Oates, 251 So.2d 665 (Fla. 1971), which the property appraiser
may consider, but to which he is not limited, are:
(a) Opinions of appropriate experts in the fields;
(b) Business or occupation of owner; (Note that this cannot
be considered over and above or the exclusion of the actual
use of the property.) (See AGO 70-123.);
(c) The nature of the terrain of the property;
(d) Economic merchantability of the agricultural product;
and
(e) The reasonably attainable economic salability of the
product within a reasonable future time for the particular
agricultural product.
(2) Other factors that are recommended to be considered are:
(a) Zoning (other then Section 193.461, Florida Statutes),
applicable to the land;
(b) General character of the neighborhood;
(c) Use of adjacent properties;
(d) Proximity of subject properties to a metropolitan area
and services;
(e) Principal domicile of the owner and family;
(f) Date of acquisition;
(g) Agricultural experience of the person conducting agricultural
operations;
(h) Participation in governmental or private agricultural
programs or activities;
(i) Amount of harvest for each crop;
(j) Gross sales from the agricultural operation;
(k) Months of hired labor; and
(l) Inventory of buildings and machinery and the condition
of the same.
Specific Authority 195.027(1), 213.06(1) FS. Law Implemented
193.461, 213.05 FS. History-New 10-12-76, Amended 11-10-77,
Formerly 12D-5.04
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