Court Opinion

ID: 9635500
Source: CourtListenerOpinion
Date Created: 2023-08-22 13:52:20.145059+00
Date Added: 2024-06-11T18:09:28.453234
License: Public Domain

BOIS, J.,
dissenting in part. I respectfully dissent from that part of the opinion that holds the leasehold interest in the land to be not taxable.
Generally, “[i]n the absence of a contrary agreement, and in the absence of ‘over-balancing considerations,’ the mere relationship of landlord and tenant ordinarily gives rise to no duty requiring the lessee to pay real-estate taxes or assessments levied against the leased property.” Annot., 86 A.L.R.2d 670, 675 (1962) (footnotes omitted).
However, “[t]he common-law rule of an implied covenant in a lease that the lessor shall pay all taxes and assessments on the leased premises has been held inapplicable to a lease of public lands from the state, and there is also authority that in the case of a perpetual lease, such as a 99-year lease renewable forever, the general rule that the landlord is responsible for the taxes has no application, the tenant in such case being in effect the virtual owner of the property, so that for purposes of taxation the mere legal title remaining in the landlord will be disregarded.” Annot., 54 A.L.R.Bd 402, 514 (1974); see Piper v. Meredith, 83 N.H. 107, 139 A. 294 (1927).
In the present case, where the lessor is not taxed but the premises, by lease, are put to private use, it would be unfair to similarly situated taxpayers, of private lessors, to totally immunize the land from taxation.
“When an interest in land, whether freehold or for years, is severed from the public domain and put into private hands, the natural implication is that it goes there with the ordinary incidents *957of private property, and therefore is subject to being taxed.” Trimble v. Seattle, 231 U.S. 683, 690 (1914); accord Annot., 54 A.L.R.3d 402, 515 (1974). There is nothing in federal law that contravenes such a holding. In fact, 10 U.S.C. § 2667(e), the statutory authority for the lease between the plaintiff and the Air Force, provides that: “The interest of a lessee of property leased under this section may be taxed by State or local governments.” The lease itself provides for the payment of taxes by the lessee if imposed.