Opinion
No. 74-208
Decided December 26, 1974.
Taxation — Structure or building included in term "real property," when — R.C. 5701.02.
Even if a structure or building located on land is personal property, such structure or building will, for purposes of taxation, be included within the definition of "real property" as that term is defined in R.C. 5701.02, unless the General Assembly has otherwise specified. (Paragraph three of the syllabus in Reed v. Bd. of Revision, 152 Ohio St. 207, approved and followed.)
APPEAL from the Board of Tax Appeals.
Appellees, Shutter Bug, Inc., and Buckeye Films, Inc., a franchisee of Shutter Bug, Inc., are in the business of selling and merchandising photographic film, equipment and processing services, and conduct their business from small buildings which are located on shopping center or bowling alley parking lots.
Appellant assessed personal property taxes against appellees, the objects of which were the buildings, and fixtures related thereto, from which appellees operate their business.
After a review and redetermination, pursuant to R.C. 5711.31, appellant affirmed the assessment on three grounds: (1) Appellees were contractually obligated to remove their buildings upon expiration of the building site leases; (2) appellees did not intend that their buildings become a permanent accession to the land; and (3) the buildings were not a benefit to the land, but rather solely beneficial to appellees' business.
Upon appeal, the Board of Tax Appeals modified appellant's determination by holding that the buildings were real property for the purpose of taxation, and ordered that the buildings be deleted from the personal property tax assessment.
The cause is now before this court upon an appeal as a matter of right.
Messrs. Lindhorst Dreidame and Mr. Richard M. Schwartz, for appellees.
Mr. William J. Brown, attorney general, and Mrs. Maryann B. Gall, for appellant.
R.C. 5701.02 reads:
"As used in Title LVII[57] of the Revised Code, `real property' and `land' include land itself, whether laid out in town lots or otherwise, all growing crops, including deciduous and evergreen trees, plants, and shrubs, with all things contained therein, and, unless otherwise specified, all buildings, structures, improvements, and fixtures of whatever kind on the land, and all rights and privileges belonging or appertaining thereto." (Emphasis ours.)
The objects of taxation in this case are plainly "buildings" and "structures," and appellant recognized them as such. Also, these objects are not mentioned in any other section of R.C. Title 57 within the meaning of the phrase "unless otherwise specified."
This court recognizes that in other legal contexts a decision might be required as to whether these objects are personal or real property.
However, in construing G.C. 5322, the predecessor of R.C. 5701.02, this court held, in paragraph three of the syllabus in Reed v. Bd. of Revision (1949), 152 Ohio St. 207:
"Even if a structure or building located on land is personal property, such structure or building will, for purposes of taxation, be included within the definition of `real property' as that term is defined in Section 5322, General Code, unless the General Assembly has otherwise specified."
We hold that the Reed decision clearly applies to this case, and that appellant has not suggested adequate reasons for us to depart from that principle.
Accordingly, the decision of the Board of Tax Appeals was neither unreasonable nor unlawful, and we affirm.
Decision affirmed.
O'NEILL, C.J., HERBERT, CORRIGAN, STERN, CELEBREZZE and P. BROWN, JJ., concur.