Breeze, Inc. v. Testa

The Supreme Court vacated the decision of the Board of Tax Appeals (BTA) that denied a tax exemption for real property leased to a community school. The tax commissioner determined that for tax years 2008 through 2010, because the property owner had collected “substantial market-rate rent,” the property was leased “with a view to profit” for purposes of former Ohio Rev. Code 5709.07(A)(1), and therefore, no exemption was available. The BTA affirmed on the basis that the school’s rental payments exceeded the lessor’s expenses under the lease. The Supreme Court vacated the BTA’s decision and remanded the case, holding (1) the key inquiry in determining whether property is lease with a view to profit focuses on the intention of the lessor; and (2) the BTA unreasonably ignored evidence of the lessor’s intent in this case. View "Breeze, Inc. v. Testa" on Justia Law