Volume 1 - Opinions of Counsel SBEA No. 90
Real vs. personal property (concrete tank used in processing paper pulp) - Real Property Tax Law, § 102:
A concrete tank, 68 feet high and 30 feet in diameter, which is owned by a so-called 9-A corporation, and which rests on a concrete foundation and is used in processing paper pulp, is taxable real property.
Our opinion has been requested as to whether a certain tank owned by a so-called 9-A corporation is exempt under subdivision 12(f) of section 102 of the Real Property Tax Law.
The tank, made of concrete, is 68 feet in height and 30 feet in diameter. It rests on a concrete foundation and is used in processing paper pulp and obviously is not movable.
The tank is taxable real property which is not entitled to the exemption given by the above cited statutory provision.
In order to qualify under that section, the manufacturing equipment of a 9-A corporation must be movable, even if it is used in a manufacturing process (City of Lackawanna v. State Board of Equalization and Assessment, 16 N.Y.2d 222, 264 N.Y.S.2d 528). A concrete structure of this size virtually could not be moved and used in another location.
Therefore, it is our opinion that the concrete tank is taxable real property.
February 16, 1972