Justia Ohio Supreme Court Opinion Summaries

Epic Aviation, LLC, a vendor of jet fuel, sold jet fuel to AirNet Systems, Inc., collected sales tax on it, and remitted the tax to the state. Epic, on behalf of AirNet, sought a refund of sales tax paid by AirNet on its purchases of jet fuel from Epic from January 1, 2006 through April 30, 2009. The tax commissioner denied the claim for refund. The Board of Tax Appeals (BTA) affirmed. Epic appealed, arguing that AirNet’s jet fuel purchases were exempt from sales tax because AirNet purchased the fuel intending to use the fuel “directly in the rendition of a public utility service” under Ohio Rev. Code 5739.02(B)(42)(a). The tax commissioner denied the exemption, finding that the business of AirNet, which does not hold a certificate of public convenience and necessity from the federal government, was not sufficiently regulated to qualify as a “public utility service.” The Supreme Court vacated the BTA’s decision and remanded, holding that Epic should have an opportunity to present evidence to establish the portion of the jet fuel purchased by AirNet that is exempt from taxation under the common-carrier standard as clarified in this opinion. View "Epic Aviation, LLC v. Testa" on Justia Law

For tax years 2002 through 2007, Appellants filed no Ohio tax returns, contending that income was earned outside Ohio. The tax commissioner assessed Ohio individual income tax against Appellants for the tax years at issue but initially failed to give notice of his reliance on the unrebutted presumption that Appellants were, in fact, Ohio residents and domiciliaries. Appellants challenged the commissioner’s assessment. The Board of Tax Appeals affirmed, concluding that Appellants failed to provide sufficient evidence to demonstrate an error in the commission’s final determination. The Supreme Court affirmed, holding (1) all income of Ohio residents is taxable, regardless of where the income is earned or received; and (2) Appellants failed to prove that they do not have to pay the amounts assessed, despite the tax commissioner’s failure to give notice of his reliance on the presumption of Ohio residency. View "Krehnbrink v. Testa" on Justia Law

Appellant, a nonresident taxpayer, filed a refund claim for an unpaid 2004 tax liability assessment. Appellant contested Ohio Rev. Code 5747.212’s imposition of income tax on a portion of the capital gain that he realized in 2004 when he sold his ownership interest in a limited liability company. The tax commissioner denied the refund claim. The Board of Tax Appeals (BTA) affirmed. Appellant appealed, arguing that applying section 5747.212 to him was unconstitutional and that he should be permitted to allocate the gain entirely outside Ohio. At issue before the Supreme Court was whether Ohio may levy income tax on Appellant’s capital gain as if it were income from the business itself. The Supreme Court reversed the decision of the BTA, holding that section 5747.212, as applied to Appellant, violates the Due Process Clause of the Fourteenth Amendment. Remanded to the tax commissioner to grant Appellant a refund. View "Corrigan v. Testa" on Justia Law

In 2009, Spire Institute (Spire), a nonprofit corporation, entered into an agreement to lease land from Roni Lee, LLC, a for-profit company. By 2012, Spire had constructed Olympic-grade athletic facilities and related improvements on about a quarter of the property. In 2010, Spire sought a real-estate-tax exemption for the entire property under the charitable-use exemption. The tax commissioner denied exemption, finding that Roni Lee used the property for land development and commercial leasing and that Spire was not “engaged in charitable activity in any substantial way.” The commissioner also denied exemption of he undeveloped property under the prospective-use doctrine. The Board of Tax Appeals (BTA) affirmed the denial of exemption. The Supreme Court affirmed the BTA’s decision, holding that Spire failed to establish that any portion of the subject property qualified for a charitable-use exemption. View "Geneva Area Recreational, Educ. & Athletic Trust v. Testa" on Justia Law

Christian Voice of Central Ohio operated a radio station from offices located in New Albany. In 1991, the tax commissioner granted an exemption for the property on the grounds that it was being used for church purposes. In 2007, following the relocation of Christian Voice’s offices to Gahanna, a complaint was filed challenging the continued exemption of Christian Voice’s New Albany property. The tax commissioner denied the complaint. In 2008, Christian Voice applied for the same exemption for its Gahanna property. The tax commissioner denied the exemption, finding no evidence that people assembled to worship together on the subject property. The Board of Tax Appeals (BTA) affirmed. The Supreme Court reversed, holding that the BTA should have allowed the exemption under Ohio Rev. Code 5709.07(A)(2) because the primary use of the property was for public worship. View "Christian Voice of Cent. Ohio v. Testa" on Justia Law

Buckeye Hospitality, Inc, the owner of a Comfort Inn hotel property located in Franklin County, filed a complaint seeking a reduction of the value assigned to its property. The Columbus City Schools Board of Education filed a countercomplaint seeking retention of the auditor’s valuation. The Franklin County Board of Revision (BOR) adopted the lower value set forth by Buckeye’s appraiser, with an adjustment. The Board of Tax Appeals (BTA) found that the valuation analysis of Buckeye’s appraiser was supported by the evidence and adopted the BOR’s approach. The Supreme Court affirmed the decision of the BTA, holding that the record contained sufficient evidence to support the decision of the BOR and the BTA. View "Columbus City Schs. Bd. of Educ. v. Franklin County Bd. of Revision" on Justia Law

Veolia Water North American Operating Services, Inc., the private owner and operator of a waste-water-treatment plant that serves both communities and certain manufacturers, sought exemption of real-estate improvements and all the personal property at the plant. The basis for its exemption claim was the treatment of industrial waste water generated by its manufacturing customers. The tax commissioner granted the exempt-facility certificate for a percentage of the personal property that reflected the amount of inflow that was industrial waste water but did not include the amount of residential waste water generated by the communities. The Board of Tax Appeals (BTA) affirmed. The Supreme Court affirmed, holding (1) the BTA’s conclusion that certain property was not entitled to the partial exemption was both reasonable and lawful; and (2) the tax commissioner did not violate its duty to give some of Veolia’s supplemental documentation to the Ohio Environmental Protection Agency. View "Veolia Water N. Am. Operating Servs., Inc. v. Testa" on Justia Law

503 South Front Street, LP, a for-profit corporation, owned 30,000 square feet of commercial space and leased the property for a term of thirty years to ShadoArt Productions, a nonprofit organization. ShadoArt filed an application for exemption under Ohio Rev. Code 5709.12 and 5709.121, which statutes articulate the substantive requirements for public-use and charitable-use exemptions. The tax commissioner denied the request. The Board of Tax Appeals (BTA) affirmed. On appeal, ShadoArt argued that because Ohio Rev. Code 5715.27, which permits certain long-term lessees to file applications for exemption, authorizes it to file an application for exemption, it was also entitled to receive an exemption under sections 5709.12 and 5709.121. The Supreme Court affirmed the decision of the BTA, holding (1) amended section 5715.27 did not alter the substantive requirements for any specific exemption under chapter 5709; and (2) ShadoArt’s claim for exemption did not satisfy the requirements set forth in sections 5709.12 and 5709.121 because the property does not belong to a charitable institution. View "ShadoArt Prods., Inc. v. Testa" on Justia Law

Rural Health Collaborative of Southern Ohio, Inc. owned a facility in Adams County that was operated under lease by Dialysis Clinic, Inc. Rural Health filed a charitable-use exemption application for the property. The tax commissioner denied the exemption. The Board of Tax Appeals (BTA) concluded that Rural Health qualified as a charitable institution under Ohio Rev. Code 5709.121(A)(2) and granted the exemption. The Supreme Court vacated the BTA’s grant of exemption and remanded, holding (1) the BTA did not abuse its discretion in determining that Rural Health qualifies as a charitable institution; but (2) BTA erred in granting the exemption because the BTA did not fully analyze the claim under Ohio Rev. Code 5709.121(A)(1). Remanded. View "Rural Health Collaborative of S. Ohio, Inc. v. Testa" on Justia Law

In 2010, the Washington County Auditor determined a value of $9,091,000 for a Lowe’s Home Center store in Marietta. Lowe’s filed a complaint before the Washington County Board of Revision (BOR) seeking a reduction to $3,600,000. The BOR retained the auditor’s valuation. On appeal, Lowe’s and the County presented competing appraisals. The Board of Tax Appeals (BTA) adopted the County’s appraisal, concluding that the County’s comparables were more appropriate. Lowe’s appealed, arguing that the BTA misapplied the Supreme Court’s decision in Meijer Stores Ltd. Partnership v. Franklin County Bd. of Revision by adopting the type of appraisal in this case that the BTA rejected in Rite Aid of Ohio, Inc. v. Washington County Bd. of Revision. The Supreme Court explained the significance of Meijer Stores in its decision in the Rite Aid appeal, also issued today. The Supreme Court vacated the BTA’s decision in the instant case, holding that reading the BTA decision in light of that explanation identified a significant omission in the BTA’s analysis. Remanded. View "Lowe's Home Ctrs., Inc. v. Washington County Bd. of Revision" on Justia Law