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components: 3.5 acres of land under water; a 1.25-acre strip of
land between the water’s edge at its normal levels and the high
water mark; and 12 piers built from adjacent lots out into the
water. The 1.25-acre strip of land was usually above water but
was nonetheless part of the Canal parcel because the Canal
extended to the high water mark. Petitioners’ expert testified
that the State maintained and operated a dam that, among other
things, controlled the water level of Lake Marion and, in
general, kept the water level below the high water mark.
With respect to the 3.5 acres of land under water,
petitioners’ expert’s method of valuation was similar to
respondent’s: He too sought comparable properties and settled on
ponds. He examined sales of farms with ponds of 3 acres or more.
The first of these sales took place in March 1995, more than 4
years after the charitable contribution in the instant case.
Petitioners’ expert relied on buyers’ estimates of the per-acre
value of the ponds, and from this he estimated the value of the
land under water in the Canal to be $2,750 per acre. He thus
valued the land under water at $9,625 (3.5 acres x $2,750).
With respect to the piers, petitioners’ expert estimated
that there were 12 piers extending out into the Canal. He valued
the piers at their estimated cost of $650 each, a figure he
obtained from tax assessor records. He included a total value
for the piers in the amount of $7,800 (12 piers x $650).
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