Information Release

PERSONAL PROPERTY TAX COUNTY AUDITOR BULLETIN NO. 284

TO: ALL COUNTY AUDITORS

FROM: JAMES J. LAWRENCE, TAX COMMISSIONER
RE: CLASSIFICATION OF CANOPIES

BULLETIN NO. 284
JUNE 1, 1999 

 

The Board of Tax Appeals (BTA) recently considered the proper classification of canopies constructed for service stations. The BTA decided that service station canopies are business fixtures and must be taxed as tangible personal property. F. P. & E. Inc. v. Tracy, Case No. 96-M-806 (March 18, 1999).

For purposes of this bulletin, "service station canopies" include the canopies themselves, all electrical wiring for the canopies, any appurtenances to the canopies, and any concrete pads or islands used as foundations for the canopies. All of these items primarily serve the business conducted on the realty rather than the realty itself. Within the terms of the F. P. & E. decision, all such items qualify as business fixtures under section 5701.03 (B) of the Revised Code.

Pursuant to this decision, County Auditors should review the classification of service station canopies in their county. In those instances where such properties are classified as real property, they should be reclassified as personal property.