Container Corp. of America v. Rutherford

293 So. 2d 379, 1973 Fla. App. LEXIS 6090
CourtDistrict Court of Appeal of Florida
DecidedApril 12, 1973
DocketNos. R-216, R-244, R-245, R-257, R-258, R-259 and R-261
StatusPublished
Cited by5 cases

This text of 293 So. 2d 379 (Container Corp. of America v. Rutherford) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Container Corp. of America v. Rutherford, 293 So. 2d 379, 1973 Fla. App. LEXIS 6090 (Fla. Ct. App. 1973).

Opinions

CARROLL, DONALD K., Judge.

The plaintiffs in seven actions, consolidated for appeal, seeking injunctive and declaratory relief, have appealed from adverse final judgments entered by the Circuit Court for Madison County.

The basic question presented for our determination in these appeals is whether the defendant tax assessor, who ignored the guidelines established by the Department of Revenue in assessing the appellants’ timber-lands in his county, has successfully carried his statutory burden of proving by a preponderance of the evidence that his assessments are correct.

In each of the seven cases the plaintiff challenges, as excessive and improperly made, the 1971 ad valorem tax assessed on the plaintiff’s timberlands aggregating approximately 160,000 acres in Madison County. With the exception of the appellant P. K. Lanier, all of the appellants arc companies engaged in the pulp or paper manufacturing industry. All of the lands involved in these seven cases were being utilized in bona fide forestry operations on January 1, 1971, and were zoned and assessed as agricultural under the provisions of Section 193.461(6), Florida Statutes F.S.A.

At a hearing before the trial court the defendant tax assessor testified that he made the timberland assessments on the appellants’ land by following the Tax Assessor’s Guide method as closely as he could, but he admitted that he declined to use the wood growth data from the Schu-macher-Coile growth tables set forth in the said guide, saying: “ . . . they did not fit my County. I don’t believe that Coile-Schumacher would fit this County.” Instead, he used a growth rate which he determined from his own investigation. He testified that he consulted the County Forester, but the latter testified that he told the assessor that Class I lands should be valued at about $97 an acre and Class II lands at $55 per acre, not $140 and $100 respectively as assessed by the assessor. The County Forester arrived at his values by application of the capitalized net income method set forth in the Tax Assessor’s Guide.

The defendant tax assessor admitted at the hearing that the maximum wood growth rate shown in the Schumachcr-Coile table for Northwest Florida was .71 cords per acre per year for Class I lands in Madison County, and admitted that the growth rate he used was “a cord to the acre” high or 1.71 cords per acre per year. Apparently the wood growth rates utilized by the assessor were greatly excessive and he was unable to provide any expert testimony or source material to substantiate his growth rates other than some studies made on wood growth for pines planted in “old fields.”

On the other hand, the appellants produced at the hearing expert testimony and the recognized source data referred to in the Tax Assessor’s Guide to substantiate the wood growth rates used by them in arriving at the values of their timberlands.

The difference in the wood growth rates used by the assessor and those used by the appellant accounts for the different values arrived at by the assessor and the appellants.

The parties hereto stipulated on the other factors, such as pulpwood stumpage price, management costs ($2.50) and capitalization rate (8.75%), to be used in the formula.

[381]*381The assessor tried to justify his assessments by evidence of land sales in Madison County, which line of evidence was admitted by the trial court over the appellants’ objections. None of these sales were shown to be comparable to the appellants’ timberlands. On cross-examination the assessor’s testimony revealed that he really did not know for what purpose most of these “comparable sale tracts” were purchased, and that most of the tracts were small farms. He admitted that he made no distinction between farm lands and large tracts of timberlands in his study of the so-called “comparable sales.” He was unable to show that any purchaser bought for the exclusive purpose of growing timber, other than sales to paper companies. A witness for the appellants, a qualified real estate appraiser, examined all of the sales referred to by the assessor, and found that all of them were “basically farmland,” as opposed to timberlands, and none were comparable to the timberlands owned and managed by the appellants.

The average per acre valuation of the timberlands involved here, was, according to the apepllants’ evidence, for Class I $82 per acre, Class II $55 per acre, which valuations closely corresponded to the values determined by the County Forester of $97 for Class I and Class II $55. By contrast, the assessor’s valuations, based upon his questionable information and calculations, were $140 for Class I and $100 for Class II. The assessor’s values for Classes III and IV similarly showed great disparity and certainly excessiveness compared to the evidence for the appellants.

In the light of the foregoing evidence, we hold that the defendant tax assessor improperly and illegally assessed the timber-lands owned by the appellants in Madison County, that he refused to follow and apply the standards established by the Department of Revenue of the State of Florida, and that he has failed to overcome the burden imposed upon him by statute to overcome the presumption (that the department’s standards are prima facie the standard measures of just valuation contemplated by the Florida Constitution) by a preponderance of the evidence. In fact, instead of overcoming that presumption, the evidence confirmed the presumption.

This legal situation basically arises out of the Article VII, Section 4, of the Florida Constitution, F.S.A., providing: “ . By general law regulations shall be prescribed which shall secure a just valuation of all property for ad valorem taxation.

Pursuant to this organic provision, the Florida Legislature enacted the following statute in implementation of that provision:

Section 195.032, Florida Statutes, F.S.A., provides:

“In furtherance of the requirement set out in § 195.002, the department of revenue shall establish and promulgate standard measures of value not inconsistent with those standards provided by law, to be used by tax assessors in all counties, including taxing districts, to assist them in arriving at assessments of all property. These standard measures of value shall be deemed and held prima facie to be the standard measures of just valuation contemplated by the constitution of this state in matters of taxation. Tax assessors and tax adjustment boards shall follow and apply such standard measures of value in arriving at assessments of all property, and the burden shall be upon any assessor or board of tax adjustment refusing to follow such standards to overcome the presumption by preponderance of the evidence.”

Section 195.111, Florida Statutes, F.S.A., provides:

“Purpose of this chapter. — It is hereby declared to be the legislative purpose and intent in this entire chapter to secure a just valuation and provide for a uniform and equal assessment as between property within each county or taxing district and as between property in each county and [382]*382property in every other county or taxing district.”

Section 195.042 provides:

“Rules and regulations. — The department of revenue shall prescribe reasonable rules and regulations for the assessing and collecting of taxes, and such rules and regulations shall be followed by the tax assessors, tax collectors, clerks of the circuit court, and boards of tax adjustment.

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Bluebook (online)
293 So. 2d 379, 1973 Fla. App. LEXIS 6090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/container-corp-of-america-v-rutherford-fladistctapp-1973.