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for sale by one who desires to sell, but is not compelled to do so, and is bought by one who desires to purchase, but is not compelled to do so. (14 C. J. S. 21). See also definition of full cash value in 17 Words and Phrases 774-777. The supreme court of this state in Hillsborough County v. Knight and Wall Co., 153 Fla. 346, 14 So. 2d 703, text 705, said valuation "for purposes of taxation, is to be determined by taking into account not one, but all, favorable and unfavorable circumstances that would control the admeasurement of its present value were it placed upon the market to be sold by the owner." The following expression also appears in said opinion: "If similar property is commonly bought and sold the price which it brings is the best test of the value. . . ." It is noted that the court in the last above mentioned case said that valuation for ad valorem taxation "is to be determined by taking into account not one, but all, favorable and unfavorable circu"mstances" bearing upon valuation. Section 193.11 (3), F. S., above quoted, requires that "lands being used for agricultural purposes shall be assessed as agricultural lands upon an acreage basis," but, notwithstanding this provision in said subsection, no formula is given for fixing its value and nothing therein requires valuation based on agricultural use alone. Any valuation of agricultural lands for purposes of ad valorem taxation, on a basis of less than full or true cash value, would be 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 consideration only one, and not all circumstances going to the valuation of the lands used for agricultural purposes, would likely result in a valuation less than the full or true cash value required by the statutes above mentioned and by Cosen Inv. Co. v. Overstreet, supra. There is, so far as we are advised, no statute, rule or regulation specifically limiting the use of agricultural lands to such a use and prohibiting such lands being used for some other purpose. To use a formula for ascertaining full cash value that is incomplete and fails to take into consideration all applicable elements necessary to fix a true full cash value would be violative of 7, Art. X, State Const., as construed in Cosen Inv. Co. v. Overstreet, supra. The use of a formula for fixing a valuation on only a small percentage of the valuation placed on a parcel of land for the prior year suggests the use of wrong formulas one or the other year. Under 193.11 (3), F. S., providing for a classification of lands as agricultural lands, there is no authority for using a different formula for fixing full cash value of such lands than that used for 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, 1962 Sup!. Aug. 17, 1962 TAXATION SALES TAXES-MOTOR VEHICLES, "M" SERIES OR DEALERS' DEMONSTRATION TAGS212.05, 212.08, 320.08, 320.13; CH. 212, F. S. To: Ray E. Green, State Comptroller, Tallahassee QUESTION:

Are motor vehicles bearing "M" series, or dealers'

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BIENNIAL REPORT OF THE ATTORNEY GENERAL

demonstration license tags entitled to exemption from sales and use taxes under Ch. 212, F. S.? Section 212.05, F. S., imposes sales and use taxes at the rate of 3 % on the sale or use of tangible personal property in Florida, the same to be computed as provided in and by said section. Motor vehicles are tangible personal property within the purview of said 212.05. Section 212.08 (3), F. S., reduces the said sales and use tax on motor vehicles to 1 % "on the sale (including occasional or isolated sales) or rental to, the use, consumption or storage for use in this state of motor vehicles." This subsection further provides that No title certificate shall be issued by the motor vehicle commissioner on any motor vehicle unless there be filed with such application for the certificate a receipt issued by an authorized motor vehicle dealer, or by a designated agent of the comptroller or by the comptroller evidencing the payment of such tax where the same is payable. (Emphasis supplied.) Motor vehicles sold in this state, unless entitled to specific exemption under some statute or law, are subject to a 1 % sales tax as aforesaid. Motor vehicles subjected to "use" in this state, when not purchased in this state and a sales tax paid thereon, are subject to a 1 % use tax. The term "use" as here employed "includes the exercise of any right or power over tangible personal property incident to the ownership thereof, or interest therein, except that it shall not include the sale at retail of that property in the regular course of business." . Section 320.13, F. S., provides that series "M" or dealers' demonstration motor vehicle tags "shall be valid for use on motor vehicles owned by the registered dealer to whom such tags were issued while being operated in connection with such dealer's business,. but shall not be valid for use for hire. (Emphasis supplied.) Section 320.08 (10), F. S., refers to said series "M" tags as "dealers demonstration tags." Chapter 10182, 1925, provided for "series 'M.' Dealers demonstration tags (for demonstration purposes only) each tag $13.50." Demonstration of motor vehicles for purposes of sale to customers appears to be included in said 320.13, Florida Statutes. We find nothing in 320.08 (10), in 320.13, or otherwise in Ch. 320, F. S., exempting motor vehicles bearing or using series "M" or dealers' demonstration tags from taxation in general, or from the sales -and use taxing statutes imposed by Ch. 212, F. S. You advise us that the following uses of a motor vehicle bearing a series "M" or dealers' demonstration motor vehicle tag are permitted 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 customer by a dealer while the customer's vehicle is being repaired by the dealer; and (5) Vehicles used by a dealer for hauling equipment or materials, used in connection with his business, or making service calls. 'Ve find nothing in the Florida Statutes, or elsewhere in the laws of Florida, exempting motor vehicle dealers, or their vehicles bearing series "M" or dealers' demonstration motor vehicle tags, from the sales and use tax statutes, including 212.08, F. S., which sets out the exemptions from the Florida sales and use tax statutes. Vehicles used by a motor vehicle dealer in connection with the

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operation of his business are not exempt from the said sales and use tax statutes. We did not discuss the question of the application of the sales and use tax statutes to the vehicles mentioned in our opinion of Oct. 31, 1957, 057-338, and the said opinion should not be construed as in any way applying to the application of the said sales and use tax statutes. The vehicles put to use by a motor vehicle dealer in connection with his business, including those bearing series "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 for general demonstration purposes, after the expiration of the motor vehicle's model year, although bearing or entitled to a series "M" or dealer's demonstration tag, are not exempt from the operation of Ch. 212, F. S., (the sales and use tax statute) because it would appear that such motor vehicle held by the motor vehicle dealer and used for demonstration purposes after the expiration of its model year should be deemed used by such dealer in connection with his business and not as demonstrator as contemplated by law. Cars held by a motor vehicle dealer as inventory for sale and not used by the dealer in the operation of his business are exempt from the sales and use tax statute because such cars have not been sold or put to a taxable use. The above stated question is answered in the negative, subject to the above and foregoing discussion of the same. 062-103-August 8, 1962 INSURANCE ISSUANCE OF NONRESIDENT INSURANCE AGENT'S LICENSE TO RESIDENT OF PUERTO RICO624.08, 626.0114, 626.0116, F. S. To: J. Edwin Larson, State Insurance Commissioner, Tallahassee QUESTION: May a nonresident agent's license be issued to an insurance agent who is a resident of Puerto Rico? Section 624.08, F. S. provides: When used in context signifying a jurisdiction other than the state of Florida, "state" means any state, district, territory, or commonwealth of the U. S. and the Panama canal zone. Puerto Rico is an organized "territory" of the U. S., though not yet incorporated into the Union, and it is not a "state" within the 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, such may be meant to be synonymous only with "place" or "area" and not necessarily to indicate that congress had in mind the niceties of language of a political scientist, who might say that Puerto Rico under its commonwealth status had ceased to be an unincorporated "territory" 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 of its constitution, was a territory of the U. S. within the meaning of 1332 of title 28. Detres v. Lions Bldg. Corp., C.A. Ill. 1956, 234 F. 2d 596.