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permits. Respondent contends that this shows that petitioners
transferred the permits. We disagree. The $1.2 million exchange
value is consistent with Catlett's appraisal of the 76.5 acres
because it was contingent on issuance by Pasco County of the
needed permits to the buyers, not because petitioners transferred
their permits to the buyers. The effect on the value of the land
of a seller having Pasco County permits is analogous to the
effect of receipt of a favorable zoning classification. The
existence of both depends on governmental action. Both can add
value to the land. A new buyer may expect that zoning will not
change and may pay more for property because of that expectancy.
Similarly, a buyer of land, the seller of which has a Pasco
County permit, may expect that his or her application for a new
permit will be approved, and may pay more for the land because of
that expectancy. However, a seller cannot sell either a permit
or a zoning classification.
We conclude that petitioners did not sell their Pasco County
permits.
3. Whether Petitioners Conveyed Goodwill or Going-Concern
Value
Respondent contends that petitioners transferred $37,000 of
goodwill or going-concern value with the 76.5 acres. Respondent
points out that petitioners called their sand business the
"Sunset Sand Mine," and the buyers formed a corporation named
"Sunset Sand Mine, Inc." Respondent contends this shows that
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