Opinion
No. 35886
Decided May 27, 1959.
Taxation — Exemptions — Property acquired for public use — Exempt although use for exempt purpose not begun — Where not devoted to nonexempt use — Municipally operated incinerator.
APPEAL from the Board of Tax Appeals.
In 1956 the city of Cleveland acquired a tract of vacant land to be used as an incinerator site by the city. Prior to 1957, contract plans and maps were prepared and construction test borings made.
The city filed an application for remission of taxes for the tax year 1957 and an application for exemption from taxation for the tax year 1958. It is estimated that the incinerator will be ready for operation in the latter part of 1959. During the years 1957 and 1958 the property was not used for any other purpose.
The Board of Tax Appeals held that the mere ownership of the real property by the city was insufficient in and of itself to form a basis for tax exemption; that the property must be not only owned by the city but must be used for a public purpose. The board denied both applications.
An appeal from the decision of the board brings the cause to this court for review.
Mr. Ralph S. Locher, director of law, Mr. Joseph H. Crowley and Mr. Richard O. Horn, for appellant.
Mr. John T. Corrigan, prosecuting attorney, and Mr. George W. Leddon, for appellee.
Although actual physical use of the property for an exempting purpose has not yet begun, the property was entitled to be exempted from taxation since it was acquired by the city with the intention of devoting it to a use exempting it from taxation and has not thereafter been devoted to a nonexempt or commercial use. The decision of the Board of Tax Appeals is reversed on authority of Carney, Aud., v. Cleveland City School District Public Library of Cuyahoga County, ante, 65, 157 N.E.2d 311.
Decision reversed.
WEYGANDT, C.J., TAFT, MATTHIAS, BELL, HERBERT and PECK, JJ., concur.