Florida/Georgia Personal Injury & Workers Compensation

...Certainly the statutes under consideration do not mandate that the taxpayers' leasehold interest be assessed at less than or a percentage of just value. This proposition has been recognized in the case of Straughn v. Amoco Production Company, 309 So.2d 39 (Fla.App.2d 1975) where the court there had under consideration Section 193.481(1), Florida Statutes, *431 relating to oil and mineral leases....

...estate, the mineral estate is dominant and as such its owner has the right of ingress and egress to explore, locate and remove minerals. Our Legislature has also recognized that severed mineral rights constitute a valuable vested property interest. Section 193.481(1), Florida Statutes, F.S.A., provides in pertinent part: "(1) Whenever the mineral, oil, gas, and other subsurface rights in or to real property in this state shall have been sold or otherwise transferred by the owner of such real pr...

...o the 1885 Constitution, adopted in 1930) of certain industrial plants, has an innovation as far-reaching as the one expressed in the majority opinion been seriously considered in Florida. NOTES [1] Fla. Const. art. XVII, § 4 (1885). [2] Fla. Stat. § 193.481, F.S.A....

...es Commission 1.6015 % City of Tallahassee 1.3333 % Seminole Electric Cooperative, Inc. 1.6994 % Florida Power Corporation 90.4473 % [3] The Legislature, however, has provided for the separation of interests in property in other contexts. See, e.g., § 193.481 (mineral, oil, gas and other subsurface rights treated as a separate interest in real property subject to taxation separate and apart from the fee simple ownership of the property); § 196.031 (exemption of homestead in various amounts depending on circumstances)....

...Himes, of Carlton, Fields, Ward, Emmanuel, Smith & Cutler, Tampa, on behalf of un-named oil companies, amicus curiae. McNULTY, Chief Judge. In this declaratory judgment action we are called upon to determine whether a leasehold interest in oil, gas and minerals is subject to ad valorem real property taxation under § 193.481, F.S....

...He accordingly ruled in favor of plaintiff-appellee Amoco and this appeal ensued. To a degree the trial court was correct as far as he went, but had he made a closer analysis we think he would have reached a different conclusion. We must therefore reverse. We begin with the pertinent statute. Section 193.481(1), F.S....

...[4] In other common instances of "bootstrapping" salt water has been legislatively declared "fresh," and vice versa, for purposes of game and fish conservation and dry land has been declared submerged land and non-navigable waters navigable for similarly valid purposes. We would not be offended, therefore, if § 193.481(1), supra, does indeed declare oil, gas and mineral leases to be sufficient interests or estates in real property to warrant ad valorem taxation as real property. Such a declaration would meet the test of a reasonable classification for a valid public purpose. *42 The final question remaining is whether § 193.481(1), supra, does precisely that....

...ecifics save those expressly excluded. It is obvious to us, then, that the failure to exclude leasehold interests from the present statute was purposeful and that the legislature clearly intended to include them. [8] Moreover, we think the fact that § 193.481(1), supra, contemplates interests "separate and apart from the fee" further bolsters this conclusion; for if the legislature did not intend to include leasehold interests, then what other such "separate" interests indeed? In view of our co...

...value or in kind of the oil, gas and minerals so produced. Local county tax assessors assessed the value of the oil companies' interests in the leases for the purpose of levying against them county ad valorem taxes for 1973. The counties acted under Section 193.481(1), Florida Statutes (1973), which provides: "193.481 Assessment of oil, mineral, and other subsurface rights — (1) Whenever the mineral, oil, gas, and other subsurface rights in or to real property in this state shall have been sold or otherwise transferred by the owner of such real property,...

...We have jurisdiction of all the cases because of conflict between the two decisions. Article V, Section 3(b)(3), Florida Constitution. Preliminarily we agree with the Second District Court that Miller v. Carr has no influence here. At the time of that decision Section 193.481(1) had not been enacted....

...c land as real property for ad valorem tax purposes. Indeed, the oil companies concede that the Legislature has the inherent power to define real property for tax purposes. Their argument is that the Legislature did not clearly do so by enactment of Section 193.481(1), Florida Statutes....

...and owning oil, gas, sulfur and all other minerals. Each contains additional provisions which grant an easement for exploration and production of minerals and further provides for termination of the lease. Appellants contend that the Legislature, by § 193.481(1), Florida Statutes, directed that such a lease be treated as an interest in real property and subject to ad valorem taxation by the county in which the land lies. § 193.481(1) provides as follows: "Whenever the mineral, oil, gas, and other subsurface rights in or to real property in this state shall have been sold or otherwise transferred by the owner of such real property, or retained or acquired through res...

...See Coastal Petroleum Company v. Secretary of the Army of the United States of America, U.S.Dist.Ct. So.Dist. Co. of Fla., Case No. 68-951-Civ.Ca. and 69-699-Civ.Ca. (unreported). *78 The defendants contend that when in the course of a 1963 amendment to the predecessor of Section 193.481, the words `not to include a leasehold interest in said subsurface rights' were deleted from the statute, this evidenced a legislative intent to subject oil, gas and mineral leases to separate taxation....

...By using the term "subsurface rights," however, we have an ambiguity. Perhaps the Legislature intended it to include a leasehold interest, but from the terminology used, such is far from clear. As pointed out by the court below, § 193.221, Florida Statutes, 1961, (predecessor to § 193.481) specifically excluded leasehold interests in subsurface rights from imposition of the tax....

...s to accurately ascertain the true value of oil and gas in place and taxation thereof is more certainly accomplished after its capture or severance from the earth or water ..." In view of the foregoing and the ambiguities which we have alluded to in § 193.481, Florida Statutes, we at least have strong doubts that the Legislature specifically intended that oil, gas, and mineral leases be subject to ad valorem taxation. Appellant tax assessor evidently also had such doubts when the Legislature amended § 193.481(1), Florida Statutes in 1963 as the assessment here challenged was not made until 1973....

...Plaintiff failed to allege facts showing standing to bring the action. 4. Co-plaintiff, Charles R. Powell, failed to allege his ownership interest in any property described in the tax deed. The trial court’s reasons for dismissing the plaintiffs’ complaint were: Under 193.481, Florida Statutes provide that when sub-surface rights are separated from the fee title to the land, sub-surface rights may be taxed separately and separate tax certificates issued thereon....

...The applicable statutes pertinent to this appeal that prescribe the procedures for the sale of tax certificates and the subsequent issue of tax deeds for subsurface rights are found in the following sections of Florida Statutes (1985): 197.343 Tax notices; additional notice required.— * He * * * * (2) When the taxes under s. 193.481 on subsurface rights have become delinquent and a tax certificate is to be sold under this chapter, a notice of the delinquency shall be given by registered mail to the owner of the fee to which these subsurface rights are attached....

...lic records of the county with such other relevant documents as may be required by the department. NOTICE OF TAX SALE CERTIFICATE UNDER SECTION 197.343(2) The problem with the trial court’s order is that, while it is correct in stating that, under section 193.481, Florida Statutes, subsurface rights may be taxed separately and separate certificates issued thereon, it fails to recognize that the plaintiff did not complain about that portion of the procedure....

...delinquency, the fee owners were effectively denied the right to an opportunity to purchase the tax certificate and possibly to reunite the fee with the subsurface rights. Therefore, the court erred in dismissing the complaint based on the fact that section 193.481 permits subsurface rights to be “taxed separately and separate tax certificates issued thereon” when the subsurface rights are separated from the fee title....

ADKINS, Judge. This is a review of a decision of the Fifth District Court of Appeal declaring section 193.481, Florida Statutes (1981), to be unconstitutional as applied, which is reported at 417 So.2d 1109 (Fla. 5th DCA 1982). We have jurisdiction. Art. V, § 3(b)(3), Fla. Const. Section 193.481 requires the separate ad valorem assessment and taxation of separately-owned subsurface rights in Florida....

...r for the years 1975 through 1979. The respondents filed this action against the Department of Revenue and the Property Appraiser of Volusia County, John Turner, asserting a multitude of objections to the assessments and contending that the statute, section 193.481, is unconstitutional on its face and as applied to them....

...y appraisers in other counties to assess similar property. Accordingly, the trial court directed that a copy of the judgment be furnished to the governor and also ordered the Department of Revenue to take appropriate action to ensure compliance with section 193.481....

...f ad valorem taxes. The evidence clearly supports the conclusion of both the trial judge and the district court that the Department had taken no serious or effective action to require all Florida property appraisers to comply with the requirement of section 193.481 to assess subsurface interests in or to real property....

...In no *801 sense have they claimed that their property interests have been singled out for unfavorable treatment as against all other property in the county. The taxpayers also challenged the validity of the assessment of their severed subsurface mineral rights on the ground that section 193.481, Florida Statutes (1981), is facially void for vagueness because it directs that the use of statutes and regulations relating to the assessment of other real property shall apply to the separate assessment of such subsurface rights on...

...Credit should be given where credit is due. The [appel-lees’] painstaking, critical scrutiny of the subject assessments in these actions has revealed that the Volusia County Property Appraiser and his staff conscientiously complied with the law as stated in Section 193.481, and did so in a highly competent, professional manner. Accordingly, we disagree with the decision of the Fifth District Court of Appeal. We find that section 193.481 has not been unconstitutionally applied and that the assessments on the respondents’ subsurface property rights are lawful and valid....

...The lack of such separate assessments merely means that the entire just value is assessed against the surface owner. The decision of the district court of appeal is quashed in part and approved in part. We agree with the trial judge that the mandatory provision of section 193.481, Florida Statutes (1981), must be implemented....

the foregoing statute are the provisions of Section 193.481 (formerly § 193.221), first enacted in 1957

subsurface rights are subject to separate taxation. Section 193.481, F.S. Prior to the enactment of s 193.481,

administration, penalties and procedures; amending section 193.481, Florida Statutes, to provide for separate

...suance of a tax deed on the fee in the surface. The owner of the said tax deed acquires those rights which were previously vested in the owner of the surface interest. He does not acquire any rights of the subsurface owner. Prior to the enactment of s. 193.481 , F.S., and its predecessor, s....

...* * * * * "Thus, for taxation purposes, the assessment and taxation of the surface included, as an integral part thereof, the assessment and taxation of the minerals. The two were not separable. There is no provision for assessment and taxation of the minerals as such. * * *" (Emphasis supplied.) By enacting s. 193.481 , F.S....

...The constitutionality of said law was upheld in the case of Dickinson v. Davis, 224 So.2d 262 . In that case, Arvida Corporation returned the mineral interests of the appellees (Thornton Davis, et al.) for taxation pursuant to Ch. 63-355, Laws of Florida (then s. 193.221, F.S., now s. 193.481 , F.S.)....

...or interests had occurred. (Also see AGO 069-110.) Thus, after a separation, two separate and distinct taxable interests would exist just the same as if a parcel of property were divided vertically. It should be noted that the legislative mandate in s. 193.481 , F.S., to separately assess when a separation has occurred, is mandatory....

...193.221, F.S.A., relating to the assessment and collection of ad valorem taxes on real property are, by the specific terms of this statute, applied to the separate assessment and taxation of subsurface rights, insofar as they may be applicable. Fla. Stats., s. 193.221(3), F.S.A. This language is now embodied in s. 193.481 (4) and (5), F.S., providing: Tax certificates and tax liens encumbering subsurface rights, as aforesaid, may be acquired, purchased, transferred, and enforced as are tax certificates and tax liens encumbering real property generally, including the issuance of a tax deed....

...Thus a tax deed could issue on the subsurface rights or interests and a tax deed could issue on the fee in the surface. Each would represent only the rights embodied in the specific interest involved. This separation was recognized in AGO 069-110 wherein my predecessor held: Under s. 193.221(1) [s. 193.481 (1)], F.S., mineral, oil, gas and other subsurface rights are to be treated as an interest in real property and subject to separate taxation....

...a separate and distinct interest in real property which is treated as a separate parcel of real property for all tax purposes. The "parcel of real property" referred to in s. 197.018 could then be either the surface parcel or the subsurface parcel. Section 193.481 (4), F.S., expressly recognizes the continued force of such statutes....

...However, regardless of the manner of severance or separation, the statute establishes separate taxable interests or parcels after such separation for all purposes relating to taxation and specifically allows tax certificates to be sold and tax deeds to issue on such interests. (See ss. 197.111 and 193.481 (5), F.S.)

This case involves the constitutionality of section 193.481, Florida Statutes (1982), which imposes ad

Supreme Court held earlier in this case1 that Section 193.-481(1)2 subjects “separated” oil, gas, and *414mineral