11
RULES OF THE
STATE OF FLORIDA
DEPARTMENT OF REVENUE
PROPERTY TAX ADMINISTRATION
PROGRAM
CHAPTER 12D-5
AGRICULTURAL AND OUTDOOR
RECREATIONAL OR PARK LANDS
12D-5.001 Agricultural Classification, Definitions.
12D-5.002 Purchase Price Paid as a Factor in
Determining Agricultural Classification.
12D-5.003 Dwellings on Agriculturally Classified
Land.
12D-5.004 Other Factors that May Become
Applicable to Classification of
Agricultural Land.
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. 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.
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.
Chapter 12D-5 Rev. 12-31-07
