Personal Property Tax

County Bulletin

TO: ALL COUNTY AUDITORS - Bulletin No. 147

FROM: Stanley J. Bowers, Tax Commissioner

DATE: January 19, 1960

RE: Taxation of Leased Machinery and Equipment

Under date of November 13, 1959, the Ohio Board of Tax Appeals, in the case of First National Bank of Akron, Trustee v. Bowers, B. T. A. No. 40577, determined that machinery and equipment leased by a nonmanufacturing lessor to a manufacturing lessee was entitled to be listed for taxation by the lessor-owner at fifty per cent (50%) of its depreciated book value even though the lessor-owner was not a manufacturer under Section 5711.16 of the Revised Code.

In so finding the Board of Tax Appeals concluded that the "use" to which the property was being put was determinative of the question of its proper listing rather than the status of the owner as a manufacturer or a merchant under the personal property tax law.

Hereafter, this Department will, consistent with the Board's decision, in all questions involving the listing of leased machinery and equipment, determine the proper listing percentage based upon the "use" of the property involved on tax listing date.

References to this matter in the Personal Property Tax Manual are herewith voided and will be corrected when the Manual is next supplemented.


As a result of a declaratory judgment action brought in the Common Pleas Court of Belmont County in the case of McCort v. Woods, it is now settled that a County Auditor, duly appointed and serving as an agent of the Tax Commissioner under Section 5731. 43 of the Revised Code in inheritance tax matters, may receive the compensation provided therefore by law without being in violation of Ohio Constitutional provisions prohibiting changes of salary during a term of office. The opinion of the Attorney General, #982, issued December 3, 1959, to the contrary is thus rendered null and void. No appointments as agents were revoked as a result of the Attorney General's opinion and, of course, none will be in view of the Court's decision. You are then entitled to the compensation provided by law for all months since your appointment as agent.