Robert S. Custer owns approximately 97 acres in Cumberland Valley Township, Bedford County, where he operates a nursery business. In March 2001, Custer purchased a used greenhouse for $1,500,disassembled it, transported it by flatbed pickup truck to his

Question

property, where he stored it until May 2004, and then reassembled it. The greenhouse is an arch-shaped structure that is 30 feet by 96 feet in size, and is approximately 12 feet high at its highest point. The greenhouse is constructed by 24 vertical pipes on each side. These vertical pipes are inserted two feet into the ground and are connected at the top to arch-shaped pipes. Plastic covering is attached to the arching pipes and serves as a covering for the structure. Because of the addition of the greenhouse to the property, the Board increased the assessed value of the buildings on Custer's property for the 2004 tax year from $11,124 to $19,978, an increase of $8,854. Custer appealed to the Board contending that the greenhouse should not be assessed because it was not real estate. Evaluate whether the greenhouse is a fixture, and properly included in the assessment, or personal property. Be sure to consider whether the fact that it is the assessor makes a difference in your evaluation.

Answer 1

Chattels used in connection with real estate are of three classes: First, those which are manifestly furniture, as distinguished from improvements and not peculiarly fitted to the property with which they are used; these always remain personalty ...Second, those which are so annexed to the property that they cannot be removed without material injury to the real estate or to themselves; these are realty, even in the face of an expressed intention that they should be considered personalty.... Third, those which, although physically connected with the real estate, are so affixed as to be removable without destroying or materially injuring the chattels themselves, or the property to which they are annexed; these become part of the realty or remain personalty, depending upon the intention of the parties at the time of the annexation; in this class fall such chattels as boilers and machinery affixed for the use of an owner or tenant, but readily removable.
The green house creates the necessary environment for raising plants and will be affixed to the property until it is worn out, the nursery business fails, or Custer and his wife no longer occupy the property.... [T]he green house is realty and taxable as real estate.

In assessment cases, the assessor tends to win because the value of the property is increased by less-than-permanent attachment that are integral to the property. In a sales transaction, it is possible that the portable greenhouse would not be included. The same would be true if the nursery owner had been merely a tenant on the land - probably would have been a trade fixture only.