The ruling by Judge Jay Cohen means Smyrna, GA developer Stan Thomas, president of Thomas Enterprises Inc., will have a $380,000 annual property tax bill instead of $1.8 million on the land he bought last year from Universal for an estimated $70 million or $38,889 per acre.

Universal representatives declined comment on the ruling. Donegan couldn't be reached immediately, but his office tells GlobeSt.com the property appraiser was "disappointed" over the ruling and will probably appeal the verdict to the Fifth Court of Appeal in Daytona Beach, FL.

The ruling was Donegan's first defeat after four previous victories at the county's value adjustment board level. Donegan previously ended the lower tax status of major landowners such as Hilton Hotels Corp., Hyatt Hotels Corp., 5226 Hotard Co., Sierra Florida Properties and RH Resorts. Like Universal, those developers also are preparing to face Donegan in state court trials to regain their lower tax status.

The owners claim annual lower agriculture tax assessments based on their growing of pine trees to help the environment. Donegan argues that claim is a sham because the owners are actually developing the land for re-sale or for a new development while hiding under the tree-planting mantle.

His lawsuit alleges Universal has been deceiving the county for years by wrongfully claiming an agriculture zoning classification on a land portfolio that once totaled 3,000 acres. But Judge Cohen's ruling maintains "the tax benefit certainly is a legitimate and lawful business consideration, and the planting of trees also has an environmental and social benefit."

Universal has sold the bulk of its land holdings, but the tax status of the dirt could affect what the new owners may have to pay in near-future taxes, area real estate lawyers close to the controversy tell GlobeSt.com.