It’s good to see Lorain County commissioners agree on one topic | Editorial | Opinion

The three Lorain County commissioners don’t always agree with one another, but supporting the County Auditor’s Office with its hopes to take its fight to the Ohio Supreme Court to determine if greenhouses should be counted for property taxes, is the correct move.

On April 28, Lorain County Commissioners Michelle Hung, David J. Moore, both Republicans, and Matt Lundy, a Democrat, voted 3-0 to authorize legal expenses for county Auditor Craig Snodgrass to hire outside legal counsel to assist with its request for the state Supreme Court to consider an appeals court verdict in the legal fight over how greenhouses should be taxed.

The case stems from the property tax dispute involving Green Circle Growers, which has argued the greenhouses are personal property not subject to property taxes on its 186-acre site at 51051 U.S. Route 20 in Camden Township.

The county commissioners authorized $35,000 in expenses for the appeal.

If accepted, the Auditor’s Office will spend up to $150,000 for the court case.

Snodgrass will use his office’s real estate assessment funds to pay for the legal counsel.

It is not general fund money and Snodgrass acknowledged it’s a substantial amount of money that his office has saved through its internal operations.

Snodgrass plans to hire the firm Tucker Ellis LLP, which has a Cleveland office.

The county Prosecutor’s Office does not have the skill or resources to specialize in that work.

Firelands Local Schools and Snodgrass have argued the greenhouses are legal “buildings” and “structures” that should be included in the company’s property valuation for property taxes.

In March, Ohio’s Ninth District Court of Appeals judges ruled 2-1 that the structures were real property.

Snodgrass will ask the state Supreme Court to review that ruling, but he noted the court is not obligated to hear the case.

We hope the court will hear the case because it is interesting and could impact other industries.

Green Circle Growers is in the top 10 largest greenhouses in the country.

If the company prevails in court, Green Circle Growers would be due refunds of taxes paid — possibly $400,000 from Lorain County and about $2.2 million from Firelands Schools.

Snodgrass said Lorain County JVS, Camden Township, Kipton Village, Lorain County Public Health and the local joint ambulance district are other political subdivisions that would be affected.

Then, going forward, other businesses and property owners will have to pay more because the tax burden shifts to them.

Snodgrass and Lundy point out that their fight is not against the business, but it’s for the taxpayers.

People shouldn’t fault them for trying to protect the tax base, because, really, everybody should pay their share.

Lorain County Assistant Prosecutor Dan Petticord agreed with Snodgrass that the consequences of this decision long-term are going to be significant.

Petticord added it’s a fight worth having, and it’s worth putting the right people in place to argue Ohio’s tax law is not correct on this issue.

Columbus attorney Jonathan T. Brollier, who represented Green Circle Growers, said the appeals court decision affirmed a 2018 ruling by the Ohio Board of Tax Appeals in favor of the company, reducing the amount of property tax it owed for tax years 2015 and 2016.

In a statement after the ruling, Brollier said, the Board of Tax Appeals and now the Court of Appeals have agreed with the company’s position that, according to definitions in the Ohio Revised Code, greenhouses on the property constitute “business fixtures” and therefore are not subject to real estate taxes.

By contrast, permanent buildings on Green Circle Growers’ property, including the office building and warehouse, are subject to real estate taxes.

Brollier continued that with its 900 employees, Green Circle Growers has a significant and positive economic impact on the local community.

In addition to the company’s share of property taxes, employees pay federal, state and local income taxes.

Brollier also stated the company and its owners have a history of generously supporting nonprofit organizations in the local community.

The issue may seem arcane, but Snodgrass said it has far-reaching effects in Ohio tax law if business owners begin arguing various structures are personal property that should not be counted for property taxes paid to school districts and local governments.

Snodgrass argues that businesses such as car washes, storage units and golf courses could make similar claims.

And, when it come to watching out for the taxpayers’ money, we hope the commissioners will agree more often.

It’s also welcome news that the commissioners are joining with the Auditor’s Office and Prosecutor’s Office to seek clarity of the law on greenhouses and possibly other industries on this issue involving personal and property taxes.