ÿWPCé 4#†èUNn %¼ 0(Â4êþUD  0lQ 0D½ 0J 0TK 0^Ÿwý 0h 0D{ 0r¿ 0|1Æ­ 0†s 0ù AO‰ 0DØ 1u U,‘ 0d½ 0@! U,a D3 U>À D/þ B)- BV Bs DC AMÓ U* eJ K 8`v~˜vÓ˜IBM Laser Printer 4019IBM4019ÈÈ,,,,ÈÈ0úØP 5v çCR› ^P(ÖÃ9 Z ‹6Times New Roman RegularX($¡¡1# 3|xO8§ÖhZŠ,Century-WP Regular((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô  26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô(3¯$¢¢Ý ƒ!ÝÝ  Ý2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  ÔƒLevel 1Level 2Level 3Level 4Level 52T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô$(Cþÿ<< Cÿÿ($$””ò òÚ  Ú1Ú  Úó ó ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ("ÿÿ$££Ò  ÒÒ  Ò< Œ 9p`(Monaco++++'ÿÿdxd< Œ 9p`(&Times New Roman**'÷ÿ dxd% Line 7 düÿP Pd d))))7Border 1dd$,Cþÿ << Gÿÿ< Œ 9p`(Arial Ý ƒ!ÝÑ#€d#ÑÔ€ÔÔ€'ÔÝ  ÝÝ ƒ"ÝÝ  Ýò òÔ€'ÔÓ  ÓÔ€.ÔÔ eee ÔFILEDÔ€.XÔó óÌò òÔ€.¼ÔÔ"USú ú, úÔÔ ƒ/ ÔÔ!  Ôó óÔ€.XÔÌÌò òCecil€Crowson,€Jr.Ô€'Ôó óÔ  ÔÌÔ€'ÂÔÔ€.ÔÔ eee Ôò òAppellate€Court€Clerkó óÔ  ÔÔ€'ÔÔ€'XÔ .Ý ƒ!ÝÑ#€d#ÑÔ€ÔÔ€'ÔÝ  ÝÒ  ÒÒ ° Òà àòòÚ  ÚÚ  ÚóóOn€appeal€the€Board€of€Equalization€only€challenges€the€lower€court's€action€to€theÏeffect€that€tanks€are€automatically€considered€tangible€personal€property€under€T.C.A.€€ððÏ67„5„903(f)€for€property€tax€purposes.€€Because€the€broader€issue€raised€by€HamiltonÏCounty€Assessor€in€essence€encompasses€this€secondary€issue,€we€approach€this€case€fromÏthe€standpoint€of€Hamilton€County€Assessor.ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA: T Monaco ÒÒ  BA: T Monaco ÒÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€%%X„d&ÓÑ#€%%Xd#ÑÔ€'ÔÝ  ÝÒ  ÒÒ £ ÒÓ` Ü` p”XÓÑ\R AØ'\ÑÑ7€ö~XdìdÈ7Ñà@ àÔ€ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌÓ  ÓWESTERN€SECTION€AT€NASHVILLEÌÓ  Ó_____________________________________________________________________________ÌÌà àÌGENERAL€OILS€COMPANY,à àà àDavidson€Chancery€No.€93„358„IIIÌDivision€of€ASHLAND€OIL,€INC.,à àà àC.A.€No.€01A01„9504„CH„00153Ìà àà àÌ€€€€€Plaintiff/Appellee.à àÌà àà àHon.ÏRobert€S.€Brandt,€ChancellorÌVS.à àà àÌÙ€ÙßL€-0,;+'h|Tþì â `€€Lßà àÌCLAUDE€RAMSEY,€ASSESSOR€OFÌPROPERTY€FOR€HAMILTONà àà àÌCOUNTY,€TENNESSEE€andà àÌTENNESSEE€STATE€BOARD€OF€à àÌEQUALIZATION,à àÌà àÌ€€€€€Defendant/Appellants.à àÌà àÌÌJERRY€C.€SHELTON,€Lyell,€Seaman€&€Shelton,€Nashville,ÌAttorney€For€Defendant/Appellant€Claude€Ramsey,€Assessor€of€PropertyÏfor€Hamilton€County,€Tennessee.ÌÌCHARLES€W.€BURSON,€Attorney€General€and€ReporterÌSEAN€P.€SCALLY,€Assistant€Attorney€GeneralÌAttorneys€For€Defendant/Appellant€Tennessee€State€Board€ofÏEqualization.ÌÌWILLIAM€R.€BUZO,€Pro€Hac€Vice,€Lexington,€Kentucky,ÌH.€BUCKLEY€COLE,€Baker,€Donelson,€Bearman€&€Caldwell,€Nashville,€ÌAttorneys€for€Plaintiff/Appellee.ÌÌò òòòAFFIRMEDó óóóÌÌOpinion€Filed:Ì_____________________________________________________________________________ÌÌò òTOMLIN,€Sr.€J.ÌÌÌÓ  ÓÓ ` Ü›XÓÓÓó óà àGeneral€Oils€Company€("plaintiff")€filed€suit€in€the€Chancery€CourtÏof€Davidson€County€against€the€Assessor€of€Property€for€Hamilton€CountyÏ("Hamilton€County€Assessor")€and€the€Tennessee€State€Board€ofÏEqualization€("Board€of€Equalization")€seeking€judicial€review€of€theÏdecision€by€the€Assessment€Appeals€Commission€("AAC")€of€the€Board€ofÏEqualization€that€for€tax€assessment€purposes€plaintiff's€petroleumÏstorage€tanks€located€in€Hamilton€County€were€real€property.€€TheÏchancellor€reversed€the€AAC,€holding€that€the€tanks€were€personalÏproperty.€€On€appeal€Hamilton€County€Assessor€and€Board€of€EqualizationÏpresent€one€issue€for€our€consideration:€€Whether€the€trial€court€erred€inÏholding€that€the€storage€tanks€should€be€classified€as€personal€propertyÏfor€tax€assessment€purposes.× ƒ1 ××  ×€€For€the€reasons€hereinafter€stated,€weÏfind€no€error€and€affirm.ÌÌà@ àI.€€BackgroundÌÌà àPlaintiff,€a€division€of€Ashland€Oil€Company,€owns€a€"tank€farm"€onÏthe€banks€of€the€Tennessee€River€in€Hamilton€County,€consisting€of€elevenÏlarge€above„ground€petroleum€storage€tanks.€€The€storage€capacity€ofÏthese€tanks€range€in€size€from€1,650€to€80,000€barrels€of€petroleumÏproducts.€€They€are€not€permanently€attached€to€the€realty,€but€insteadÏstand€freely€on€specially€prepared€beds€of€sand€and€gravel.€€They€areÏconnected€to€one€another€by€a€series€of€pipes€that€allow€them€to€be€filledÏand€emptied.€€All€of€the€tanks€are€moveable€regardless€of€size€or€storageÏcapacity.€€In€1989€plaintiff€removed€three€smaller€tanks€from€the€farmÏand€relocated€a€larger€tank€within€the€farm€to€comply€with€federalÏspacing€requirements.ÌÌà àFor€the€tax€years€1989€to€1991€Ashland€listed€the€storage€tanks€onÏtheir€personal€property€tax€returns€filed€with€Hamilton€County€Assessor.€ÏFor€all€three€of€these€years€Hamilton€County€Assessor€reclassified€andÏassessed€the€tanks€as€real€property.€€Plaintiff€appealed€the€Assessor'sÏreclassification€to€the€Board€of€Equalization,€which€held€that€the€tanksÏshould€be€classified€as€personal€property.€€The€AAC€of€the€Board€ofÍEqualization€reversed€the€Board's€initial€decision,€holding€that€the€tanksÏwould€be€classified€as€real€property.€€This€suit€followed.ÌÌà àOn€appeal€conclusions€of€law€by€the€trial€court€are€subject€to€òòò òdeÏnovoóóó ó€review€without€a€presumption€of€correctness.€€òòPresley€v.€Bennettóó,Ï860€S.W.2d€857,€859€(Tenn.€1993).€€We€find€in€Article€II€ðð€28€of€theÏConstitution€of€this€state€that€three€classes€of€property€for€taxationÏpurposes€are€established:€€real€property,€tangible€personal€property,€andÏintangible€personal€property.€€Tenn.€Const.€art.€II€ðð€28.€€Industrial€andÏcommercial€property€classified€as€real€property€is€assessed€at€fortyÏ(40%)€percent€of€its€value,€while€property€classified€as€tangible€personalÏproperty€is€only€assessed€at€thirty€(30%)€percent€of€its€value.€€òòId.óóÌÌà àThe€Board€of€Equalization€is€authorized€by€the€legislature€of€thisÏstate€to€promulgate€rules€for€use€by€local€tax€assessors€for€theÏappraisal,€classification,€and€assessment€of€property.€€T.C.A.€ðð€4„3„5103Ï(1991);€T.C.A.€ðð€67„1„305€(1995).€€Prior€to€1989€the€Board€ofÏEqualization€published€unofficial€guidelines€that€classified€above€groundÏstorage€tanks€as€personal€property€and€below€ground€storage€tanks€asÏreal€property.€€In€October€1988€the€Board€promulgated€new€rules€designedÍto€supersede€these€€guidelines€effective€January€1,€1989.€€These€newÏrules€contained€a€depreciation€schedule€for€the€purpose€of€reportingÏcommercial€and€industrial€property€which€lists€"tanks"€along€withÏseveral€other€items€of€tangible€personal€property.€€Effective€January€1,Ï1991€the€legislature€codified€the€depreciation€and€reporting€scheduleÏfound€in€the€Board€of€Equalization€rules,€which€included€the€Board'sÏclassification€of€"tanks"€as€tangible€personal€property.€€T.C.A.€ðð€67„5„903(f)€(1994).€€Section€67„5„903€reads€in€pertinent€part€as€follows:ÌÌÓÓà8 àòòSchedulesð"ðProperty€used€for€business,€professions,Ïmanufacturingóó.ð"ð(a)€€All€.€.€.€corporations€.€.€.€shall€be€furnishedÏby€the€assessor€not€later€than€February€1€of€each€year,€aÏschedule€requiring€the€taxpayer€to€òòlist€in€detail€all€tangibleÏpersonal€propertyóó€owned€by€the€taxpayer€and€used€or€held€forÏuse€in€such€business€or€profession€including,€but€not€limitedÏto€furniture,€fixtures,€machinery€and€equipment,€all€rawÏmaterials,€supplies,€but€excluding€all€finished€goods€in€theÏhands€of€the€manufacturer€and€the€inventories€of€merchandiseÏheld€for€sale€or€exchange,€such€schedule€to€be€approved€by€theÏdirector€of€property€assessments.ÌÌà8 àà à.€.€.€.€ÌÌà8 àà à(f)€€The€schedule€approved€by€the€director€of€propertyÏassessments€and€supplied€to€taxpayers€shall€containÏschedules€reflecting€the€following€rates€of€allowableÏdepreciated€cost€for€the€listed€categories€of€property,€as€wellÏas€spaces€for€general€data€on€the€particular€taxpayer.ÌÌà8 àà à.€.€.€.ÌÌà8 àà àGROUP€6ð"ðBillboards,€òòTanksóó,€and€Pipelines€(16€yr.€Life).ÌÌT.C.A.€ðð€67„5„903€(1994)€(emphasis€added).ÌÌÌÌÓÓà àIrrespective€of€the€above,€Hamilton€County€Assessor€contends€thatÏthe€chancellor€erred€in€finding€the€storage€tanks€in€question€to€beÏpersonal€property.€€The€Assessor€argues€that€it€is€improper€to€follow€theÏtangible€personal€property€schedules€set€out€in€T.C.A.€ðð€67„5„903(f)€untilÏthere€has€been€a€determination€that€such€tanks€are€not€real€property.€€TheÏAssessor€attempts€to€bolster€his€contention€on€the€grounds€that€theÏlegislature€did€not€mandate€that€all€tanks€were€deemed€to€be€personalÏproperty€irrespective€of€their€size,€weight,€capacity,€and€other€physicalÏcharacteristics,€and€in€light€of€this,€this€court€must€consider€theÏstatutory€and€Board€of€Equalization€rules€defining€real€and€personalÏproperty,€along€with€the€common€law,€so€as€to€determine€the€properÏclassification€of€these€tanks.ÌÌà àThe€Tennessee€Code€provides€the€following€definitions€of€real€andÏpersonal€property€which€are€applicable€to€this€case:ÌÌÓÓà8 àà à(2)€€òò"Commercial€and€industrial€tangible€personalÏpropertyóó"€includes€personal€property,€such€as€goods,€chattels,Ïand€other€articles€of€value€which€are€capable€of€manual€orÏphysical€possession,€and€machinery€and€equipment€which€are:ÌÌà8 àà8 à(A)€€Used€essentially€and€principally€for€theÏcommercial€or€industrial€purposes€or€processesÏfor€which€they€are€intended;€andÌà8 àà8 à(B)€€If€affixed€or€attached€to€real€property,€can€beÏdetached€without€material€injury€to€such€realÏproperty.ÌÌà8 àà8 à.€.€.€.€ÌÌà8 àà à(7)€€òò"Personal€property"óó€includes€every€species€andÏcharacter€of€property€which€is€not€classified€as€real€property.ÌÌà8 àà à.€.€.€.ÌÌà8 àà à(9)€€òò"Real€property"óó€includes€lands,€tenements,Ïhereditaments,€structures,€improvements,€movable€propertyÏassessable€under€ðð€67„5„802,€or€machinery€and€equipmentÏaffixed€to€realty€(òòexcept€as€otherwise€provided€for€hereinóó)Ïand€all€rights€thereto€and€interest€therein,€equitable€as€wellÏas€legal.ÌÌà8 àà à.€.€.€.ÌÌà8 àà à(12)€€òò"Tangible€personal€property"óó€includes€personalÏproperty€such€as€goods,€chattels,€and€other€articles€of€valueÏwhich€are€capable€of€manual€or€physical€possession,€andÏcertain€machinery€and€equipment,€separate€and€apart€from€anyÏreal€property,€and€the€value€of€which€is€intrinsic€to€theÏarticle€itself.ÌÌÌÌT.C.A.€ðð€67„5„501(2),€(7),€(9),€&€(12)€(1994)€(emphasis€added).ÌÌÓÓÌà àWhen€engaging€in€statutory€construction,€this€court€must€give€theÏfullest€possible€effect€to€the€intent€of€the€legislature.€€òòWestinghouseÏElectric€Corp.€v.€Kingóó,€678€S.W.2d€19,€23€(Tenn.€1984),€òòcert.€deniedóó,€470ÏU.S.€1075€(1985);€òòTennessee€Manufactured€Hous.€Assððn€v.€Metro€Gov'tóó,€798ÏS.W.2d€254,€257€(Tenn.€App.€1990).€€Courts€must€take€statutes€as€theyÏfind€them.€€òòWatts€v.€Putnam€Countyóó,€525€S.W.2d€488,€494€(Tenn.€1975).€€InÏaddition,€the€courts€must€construe€statutes€as€a€whole€in€light€of€theirÏgeneral€purpose.€€òòOliver€v.€Kingóó,€612€S.W.2d€152,€153€(Tenn.€1981).€€If€theÏstatutory€language€is€clear€and€unambiguous€and€the€enactment€is€withinÏlegislative€competency,€there€is€no€need€to€look€beyond€the€literalÏmeaning€of€the€statute.€€òòCarson€Creek€Vacation€Resorts,€Inc.€v.ÏDepartment€of€Revenueóó,€865€S.W.2d€1,€2€(Tenn.€1993).€€Because€this€is€aÏtaxation€statute,€it€must€be€construed€liberally€in€favor€of€the€taxpayerÏand€strictly€construed€against€the€taxing€authority.€€òòSky€Transpo,€Inc.€v.ÏCity€of€Knoxvilleóó,€703€S.W.2d€126,€129€(Tenn.€1985).ÌÌà àBecause€the€word€"tanks"€is€not€defined€in€the€statutes€involved,€weÏmust€give€it€its€plain,€ordinary€meaning.€€"Tank"€is€defined€as€"a€large,Íoften€metallic€container€for€holding€or€storing€liquids€or€gases."€€TheÏòòAmerican€Heritage€Dictionaryóó€1834€(3d€ed.€1992).€€In€our€opinionÏplaintiff's€petroleum€storage€tanks€fall€into€the€category€of€tanks€on€theÏtangible€personal€property€depreciation€schedule€as€set€out€in€T.C.A.€ððÏ67„5„903(f).ÌÌà àBased€upon€the€plain€meaning€of€this€code€section,€we€are€of€theÏopinion€that€the€legislature€clearly€and€unambiguously€intended€toÏclassify€all€tanks€as€tangible€personal€property.€€Tanks€are€listed€on€theÏtangible€personal€property€depreciation€schedule€without€any€referencesÏto€size,€storage€capacity,€weight,€or€any€other€physical€characteristics.€ÏIn€addition,€we€find€that€tanks€are€not€real€property€as€defined€by€T.C.A.€ððÏ67„5„501(9).€€The€tanks€here€under€consideration€are€not€permanentlyÏattached€to€the€realty,€which€is€a€key€distinction€between€theÏlegislature's€definitions€of€real€property€and€tangible€personal€property.ÌÌà àEven€if€the€tanks€were€attached€to€the€realty,€in€the€definition€ofÏreal€property€set€forth€in€T.C.A.€ðð€67„5„501(2)€an€exception€is€permitted:Ï"except€as€otherwise€provided€for€herein."€€The€legislature€has€"otherwiseÏprovided"€for€tanks€in€T.C.A.€ðð€67„5„903(f)€Group€6,€by€listing€tanks€inÍthe€tangible€personal€property€depreciation€schedules.ÌÌà àBecause€it€appears€clear€to€us€that€the€legislature€intended€for€allÏtanks€to€be€classified€as€tangible€personal€property,€we€need€go€noÏfurther.€€In€our€opinion€the€trial€court€committed€no€error€in€concludingÏthat€plaintiff's€storage€tanks€should€be€classified€as€tangible€personalÏproperty€out€of€T.C.A.€ðð€67„5„903(f).ÌÌà àAccordingly,€the€decree€of€the€chancellor€is€affirmed.€€Costs€of€thisÏcause€on€appeal€are€taxed€one„half€to€Hamilton€County€Assessor€and€one„half€to€Board€of€Equalization,€for€which€execution€may€issue€if€necessary.ÌÓÓÌÌÌà àà àà àà àà àà à_________________________________________Ìà àà àà àà àà àà àTOMLIN,€Sr.€J.ÌÌÌÌà àà àà àà àà àà à_________________________________________à àà àà àà àà àà àCRAWFORD,€P.J.à àà àà à(CONCURS)ÌÌÌÌà àà àà àà àà àà à_________________________________________Ìà àà àà àà àà àà àHIGHERS,€J.à àà àà à(CONCURS)