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BIENNIAL REPORT OF THE ATTORNEY GENERAL 521for sale by one who desires to sell, but is not compelledto do so, and is bought by one who desires to purchase, butis not compelled to do so. (14 C. J. S. 21).See also definition of full cash value in 17 Words and Phrases774-777.The supreme court of this state in Hillsborough County v.Knight and Wall Co., 153 Fla. 346, 14 So. 2d 703, text 705, saidvaluation "for purposes of taxation, is to be determined by takinginto account not one, bu t all, favorable and unfavorable circumstances that would control the admeasurement of i ts present valuewere it placed upon the market to be sold by the owner." The following expression also appears in said opinion: " I f similar propertyis commonly bought and sold the price which it brings is the besttest of the value. . . ." I t is noted that the court in the last abovementioned case said that valuation for ad valorem taxation "is tobe determined by taking into account not one, but all, favorableand unfavorable circu"mstances" bearing upon valuation.Section 193.11 (3), F. S., above quoted, requires that "landsbeing used for agricultural purposes shall be assessed as agr icultural lands upon an acreage basis ," but, notwithstanding this pro

vision in said subsection, no formula is given fo r fixing it s valueand nothing therein requires valuation based on agricultural usealone. Any valuation of agricultural lands fo r purposes of ad valorem taxation, on a basis of less than full or true cash value, wouldbe violative of 193.06, 193.11, 193.121 193.13, 193.14, and 193.22,F. S., as well as the rule announced in Cosen Inv. Co. v. Overstreet,supra. To value agricultural lands by taking into considerationonly one, and not all ci rcumstances going to the valuation of thelands used for agricultural purposes, would likely resu lt in a valuation less than the full or true cash value required by the statutesabove mentioned and by Cosen Inv. Co. v. Overstreet, supra . Thereis, so far as we are advised, no statute, rule or regulation specifically limiting the use of agricultural lands to such a use andprohibiting such lands being used for some other purpose. To usea formula for ascertaining full cash value that is incomplete andfails to take into consideration all applicable elements necessary tofix a true full cash value would be violative of 7, Art. X, StateConst., as construed in Cosen Inv. Co. v. Overstreet, supra. The useof a formula for fixing a valuation on only a small percentage ofthe valuation placed on a parcel of land fo r the prior year suggests the use of wrong formulas one or the o ther year.Under 193.11 (3), F. S., providing for a classification of landsas agricultural lands, there is no authority fo r using a differentformula for fixing full cash value of such lands than that usedfor fixing the full cash value of other lands, there being no requirement that a different rule be applied under said subsection (3).062102-August 3, 1962Sup!. Aug. 17, 1962 TAXATIONSALES TAXES-MOTOR VEHICLES, "M" SERIESOR DEALERS' DEMONSTRATION TAGS212.05, 212.08, 320.08, 320.13; CH. 212, F. S.To: Ray E. Green, State Comptroller, TallahasseeQUESTION:Are motor vehicles bearing "M" series, or dealers'

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522 BIENNIAL REPORT OF THE ATTORNEY GENERALdemonstration license t ags ent it led to exemption fromsales and use taxes under Ch. 212, F. S.?Section 212.05, F. S., imposes sales and use taxes at th e rateof 3% on the sale or use of tangible personal property in Florida,the same to be computed as provided in and by said section. Motorvehicles are tangible personal property within the purview of said212.05. Section 212.08 (3), F. S., reduces the said sales and usetax on motor vehicles to 1% "on th e sale (including occasional orisolated sales) or rental to, the use, consumption or s torage for usein this state of motor vehicles." This subsection further providesthat No title certificate shall be issued by the motor vehiclecommissioner on any motor vehicle unless there be filedwith such application for the certificate a receipt issuedby an authorized motor vehicle dealer, or by a designatedagent of the comptroller or by th e comptroller evidencingthe payment of such tax where the same is payable. (Em-phasis supplied.)Motor vehicles sold in this state, unless entitled to specific ex-emption under some statute or law, are subject to a 1% sales taxas aforesaid. Motor vehicles subjected to "use" in this s ta te , whennot purchased in this state and a sales ta x paid thereon, are sub-ject to a 1% use tax. The term "use" as here employed "includesthe exercise of any right or power over tangible personal propertyincident to the ownership thereof, or interest therein, except thatit shall not include the sale at retail of that property in the regularcourse of business." .Section 320.13, F. S., provides that series "M" or dealers'demonstration motor vehicle tags "shall be valid for use on motorvehicles owned by the registered dealer to whom such tags wereissued while being operated in connection with such dealer's busi-ness,. bu t shall not be valid for use for hire. (Emphasis supplied.)Section 320.08 (10), F. S., refers to said series "M" tags as "deal-ers demonstration tags." Chapter 10182, 1925, provided fo r "series

'M.' Dealers demonstration tags (for demonstration purposes only)each tag $13.50." Demonstration of motor vehicles fo r purposesof sale to customers appears to be included in said 320.13, FloridaStatutes. We find nothing in 320.08 (10), in 320.13, or otherwisein Ch. 320, F. S., exempting motor vehicles bearing or using series"M" or dealers' demonstration tags f rom taxat ion in general, orfrom the sales -and use taxing statutes imposed by Ch. 212, F. S.You advise us that the following uses of a motor vehicle bear-ing a series "M" or dealers' demonstration motor vehicle ta g arepermitted uses: (1) Vehicles used for demonstration purposes;(2) Vehicles operated in connection with the dealer's business; (3)Vehicles in transit to and from a dealer's place of business; (4)Vehicles temporarily loaned, without compensation, to a customerby a dealer while the customer's vehicle is being repai red by th edealer; and (5) Vehicles used by a dealer fo r hauling equipmentor materials, used in connection with his business, or making servicecalls. 'Ve find nothing in the Florida Statutes, or elsewhere in th elaws of Florida, exempting motor vehicle dealers, or their vehiclesbearing series "M" or dealers' demonstration motor vehicle tags,from the sales and use tax statutes, including 212.08, F. S., whichsets out the exemptions from the Florida sales and use ta x statutes.Vehicles used by a motor vehicle dealer in connection with the

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BIENNIAL REPORT OF THE ATTORNEY GENERAL 523operation of his business are not exempt from the said sales anduse tax statutes. We did not discuss the question of the applicationof the sales and use tax statutes to the vehicles mentioned in ouropinion of Oct. 31, 1957, 057-338, and the said opinion should notbe construed as in any way applying to the application of the saidsales and use tax statutes.The vehicles put to use by a motor vehicle dealer in connection with his business, including those bearing ser ies "M" or deal- .er's demonstration tags, are subject to the operation of Ch. 212,F. S. Motor vehicles used by a motor vehicle dealer fo r generaldemonstration purposes, after the expiration of the motor vehicle'smodel year, although bearing or entitled to a series "M" or dealer'sdemonstration tag, are not exempt from the operation of Ch. 212,F. S., (the sales and use tax statute) because it would appear thatsuch motor vehicle held by the motor vehicle dealer and used fo rdemonstration purposes after the expiration of its model year shouldbe deemed used by such dealer in connection with his business andnot as demonstrator as contemplated by law. Cars held by a motorvehicle dealer as inventory for sale and not used by the dealerin the operation of his business are exempt from the sales and usetax statute because such cars have not been sold or put to a taxableuse. The above stated question is answered in the negative, subjectto the above and foregoing discussion of the same.062-103-August 8, 1962

INSURANCEISSUANCE OF NONRESIDENT INSURANCE AGENT'SLICENSE TO RESIDENT OF PUERTO RICO624.08, 626.0114, 626.0116, F. S.To: J. Edwin Larson, State Insurance Commissioner, TallahasseeQUESTION:May a nonresident agent's license be issued to aninsurance agent who is a resident of Puerto Rico?

Section 624.08, F. S. provides:When used in context signifying a jurisdiction otherthan the state of Florida, "state" means any s ta te , district, terri tory, or commonwealth of the U. S. and th ePanama canal zone.Puerto Rico is an organized "territory" of the U. S., thoughnot ye t incorporated into the Union, and it is no t a "state" withinthe prohibition of the commerce clause. U.S.C.A. Const . Art. 1, 8,cl. 3; Sancho v. Bacardi Corp. of America, C.C.A. Puerto Rico 1940,109 F. 2d 57, reversed on other grounds 61 S. Ct. 219, 311 U.S.150,85 L. Ed. 98.When congress uses the term "territory" in a statute, suchmay be meant to be synonymous only with "place" or "area" andnot necessarily to indicate that congress had in mind the niceties oflanguage of a political sc ientis t, who might say that Puerto Ricounder it s commonwealth status had ceased to be an unincorporated" te rr ito ry" of the U. S. Moreno Rios v. U. S., C.A. Puerto Rico,1958, 256 F. 2d 68.Puerto Rico, both before and after adoption and approval ofits constitution, was a territory of the U. S. within the meaningof 1332 of title 28. Detres v. Lions Bldg. Corp., C.A. Ill. 1956, 234 F.2d 596.