Summary
In Green Circle Growers, we affirmed the BTA's decision and held that greenhouse structures "attached to the realty by placement of metal sleeves into post holes anchored in concrete" are structures on real estate.
Summary of this case from Litton Sys., Inc. v. TracyOpinion
No. 86-1809
Decided January 13, 1988
Taxation — Ad valorem real estate taxation — Double poly hoop greenhouse is a "structure" and "real property," when — R.C. 5701.02.
O.Jur 2d Taxation § 158.
A greenhouse attached to metal pipes which are imbedded in concrete is a structure and therefore defined as real property under R.C. 5701.02 for the purpose of ad valorem real estate taxation.
APPEAL from the Board of Tax Appeals.
The issue presented is whether a double poly hoop greenhouse should be classified as real property for the purpose of determining (pursuant to R.C. 5717.03) the taxable value of the property to which the greenhouse is attached.
To fabricate a double poly hoop greenhouse, rows of metal pipes are imbedded in concrete and used as sleeves for vertical members of the greenhouse. The vertical members are inserted into the sleeves and bolted to them. The remainder of the skeleton is then assembled and bolted together. Plastic sheeting is stretched over this frame. These greenhouses are six to eight feet high, and can be disassembled and stored, as is usually done in the summer.
The greenhouses are assembled over a porous concrete surface which was described as a slurry, poured over gravel to give some body to the gravel base so that it would not be kicked around easily. Concrete walkways go to and through the greenhouses. They are heated by a series of satellite boilers and piping systems which circulate hot water. The appellant grows plants in these greenhouses.
The Lorain County Auditor included the greenhouses as realty in placing a fair market value on appellant's property. The board of revision made no change in the auditor's value. On appeal, the Board of Tax Appeals determined that the greenhouses were real property. However, the board did reduce the fair market value of the real estate from $1,486,170 to $575,000.
The cause is before this court upon an appeal as a matter of right.
Fred Siegel Co., L.P.A., Fred Siegel, Wayne E. Petkovic and Karen Bauernschmidt, for appellant.
Gregory A. White, prosecuting attorney, and Alan W. Anderson, for appellees.
Real property is defined in R.C. 5701.02 which provides:
"As used in Title LVII 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."
The appellees claim that the greenhouses are structures on the land. The taxpayer argues that the greenhouses are "implements" used in the pursuit of horticulture. We find the greenhouses to be structures and hold in favor of the appellees.
The case presents a question of statutory construction. The definition of real property for taxation is governed by R.C. 5701.02. The statutory definition deviates from the traditional common-law distinction between realty and personalty. As we held in Shutter Bug v. Kosydar (1974), 40 Ohio St.2d 99, 69 O.O. 2d 487, 321 N.E.2d 239:
"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."
Clearly these greenhouses are structures erected upon the taxpayer's real estate. They are attached to the realty by placement of metal sleeves into post holes anchored in concrete.
The decision reached by the Board of Tax Appeals follows a growing line of precedent. Pittsburgh-Des Moines Steel Co. v. Lindley (1982), 1 Ohio St.3d 15, 1 OBR 39, 437 N.E.2d 302 (storage tanks which rest on a prepared foundation and which are utilized to store oil, chemicals and gasoline); Bobb Bros. v. Bd. of Revision (1976), 45 Ohio St.2d 81, 74 O.O. 2d 195, 341 N.E.2d 573 (concrete and metal silos used to store grain); Shutter Bug, supra (small kiosks placed on shopping center and bowling alley parking lots and used to conduct the business of selling film and film processing services); Parkbrook Golf Corp. v. Donahue (1966), 6 Ohio St.2d 198, 35 O.O. 2d 311, 217 N.E.2d 211 (storage supply building, lighting, stone walkways, fencing and a watering system utilized in a miniature golf course operation); Reed v. Cty. Bd. of Revision (1949), 152 Ohio St. 207, 40 O.O. 217, 88 N.E.2d 701 (a cottage erected on land leased from the state).
Accordingly we hold that a greenhouse attached to metal pipes which are imbedded in concrete is a structure and therefore defined as real property under R.C. 5701.02 for the purpose of ad valorem real estate taxation. The decision of the Board of Tax Appeals was neither unreasonable nor unlawful, and we affirm.
Decision affirmed.
MOYER, C.J., SWEENEY, LOCHER, DOUGLAS and WRIGHT, JJ., concur.
HOLMES, J., dissents.