Luca v. Lincoln County Assessor

These cases involved three adjoining properties located in a scenic research area. The land was historically used for timber, as well as for dairy pasture and recreational uses. The dairy uses were gradually replaced by residential development. The scenic research area was designated protected property by the federal government in order to protect the natural habitat and environment from urban growth and development.

All three subject properties were encumbered by conservation easements that were granted to the United States Forest Service. Two sets of plaintiffs asked that their special assessments continue without interruption, but the court concluded that they were not entitled to special assessment for tax year 2001--2002. The core issue in this case was the highest and best use of the property. The court disagreed with plaintiffs that the highest and best use of the property on the January 1, 2001, assessment date was as open space. It concluded that the highest and best use of the properties as of the assessment date was as rural residential homesites. The assessor valued the properties as part of a whole. This was the correct standard.