Question 1

What is value-in-use in Florida appraisal?

Accepted Answer

Value-in-use: the value of a property based on its current use to the current owner (as opposed to market value: the value based on the property’s highest and best use). The distinction: market value (what a willing buyer would pay a willing seller in an arm’s length transaction), and value-in-use (what the property is worth to the current user: considering their specific needs, adaptations, and circumstances). Example: a manufacturing plant: market value may reflect: the value of the land for redevelopment; value-in-use reflects: the plant’s value as a functioning manufacturing facility to the current operator.

Question 2

How is value-in-use used in Florida property tax assessment?

Accepted Answer

FL tax assessment: the FL Constitution (Article VII, Section 4) requires that property be assessed at "just value" (market value). However: the FL agricultural classification (Section 193.461: greenbelt law) assesses agricultural property based on its agricultural use value (not its development potential): this is a form of value-in-use assessment. Similarly: the conservation classification (Section 193.501) assesses conservation land based on its conservation use value. The value-in-use assessment: can significantly reduce property taxes for qualifying properties (agricultural land assessed at agricultural value may pay 90% less in property taxes than if assessed at market value).

Question 3

When is value-in-use relevant in Florida legal proceedings?

Accepted Answer

Legal proceedings: eminent domain (just compensation may include: the value of the property to the condemnee: if the property has a special use that makes it more valuable to the current owner than to the general market), divorce (the value of the family business may be based on its value-in-use: the income it generates for the family: rather than its liquidation value), and insurance (the insurance value may be based on: replacement cost in use: the cost to replace the property as a functioning facility: rather than market value). FL courts: generally use market value but may consider value-in-use in appropriate circumstances.

Value in Use Appraisal

Value-in-Use Appraisal in Florida

What It Is

FL Tax Application

Legal Proceedings

Related Terms

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