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Kipps v. Susquehanna County Board of Assessment

Citations: 743 A.2d 539; 1999 Pa. Commw. LEXIS 899

Court: Commonwealth Court of Pennsylvania; December 27, 1999; Pennsylvania; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by a taxpayer against the Susquehanna County Court of Common Pleas' decision, which affirmed the Board of Assessment's denial of a real estate tax exclusion for a hay storage structure under Section 201(a) of The Fourth to Eighth Class County Assessment Law. The taxpayer, operating a farm, constructed a structure intended solely for hay storage for bison feed, arguing it should be exempt from assessment like grain bins or corn cribs. The Board classified the structure as a barn and assessed its value, which the trial court upheld, asserting that tax exemptions should be narrowly construed. The taxpayer contended the structure was personal property, not real estate, but the court deemed it taxable as a building based on its permanence. The court emphasized that only freestanding grain bins or corn cribs qualify for exemption and declined to extend exemptions beyond explicit statutory terms. The taxpayer's argument on structural classification was found waived as it wasn't raised earlier. Concerns about tax policy inequities were dismissed, with the court limiting its review to constitutional matters. The Board's motion for attorney’s fees was denied, considering the taxpayer's reasonable statutory interpretation despite the unfavorable outcome. The trial court's order was affirmed, maintaining the taxable status of the structure as real estate.

Legal Issues Addressed

Classification of Structures as Real Estate

Application: The Taxpayer's argument that the structure should be classified as personal property was rejected, with the court affirming its classification as taxable real estate based on its permanence and function as a building.

Reasoning: The Taxpayer contends that if the hay storage structure is not classified as a grain bin or corn crib, it is not specifically mentioned in Section 201(a) and should thus fall under the category of 'all other real estate not exempt by law,' arguing that the structure is personal property rather than real estate.

Denial of Attorney’s Fees for Appeals Based on Reasonable Interpretation

Application: The Board's request for attorney's fees was denied as the court found the Taxpayer's appeal was based on a reasonable, albeit incorrect, interpretation of the statute.

Reasoning: The Board's request for attorney’s fees is denied because the Taxpayer's appeal, while incorrect, was based on a reasonable interpretation of the statute.

Judicial Review Limited to Constitutional Matters

Application: The court emphasized its role is limited to constitutional review and not in assessing the wisdom of the tax policy, dismissing the Taxpayer's concerns about inequities in tax treatment.

Reasoning: The court acknowledges the Taxpayer's concerns about perceived inequities in tax treatment for structures used to store food for different types of livestock but clarifies that judicial review is limited to constitutional matters, not the wisdom of tax policy.

Narrow Interpretation of Tax Exemptions

Application: The trial court's decision to uphold the assessment was based on the principle that tax exemptions should be narrowly construed against the taxpayer, affirming the inclusion of the structure's value in the property assessment.

Reasoning: The trial court upheld this assessment, stating that exemptions should be narrowly interpreted against the taxpayer and affirming that the structure's value should be included in the property assessment since it stores hay, not corn or grain.

Real Estate Tax Exemption under The Fourth to Eighth Class County Assessment Law

Application: The court examined whether the Taxpayer's hay storage structure qualified for a tax exemption under Section 201(a) and determined it did not meet the criteria for exemption as it was not a grain bin or corn crib.

Reasoning: The court clarified that Section 201(a) explicitly lists subjects of taxation, and only freestanding, detachable grain bins or corn cribs used for animal feed storage qualify for exemption. The Taxpayer's hay storage structure does not meet this definition; thus, it remains subject to assessment and taxation.