Opinion Number

Dear Ms. Guidry:

You requested the opinion of this office concerning the situation where an individual owns a corporation and the real estate the corporation operates on. The corporation, in its corporate capacity, makes, pays for and depreciates improvements to the real estate. Your question is would the corporation be liable for ad valorem taxes as leasehold improvements?

It is assumed that the property is not subject to any exemption from ad valorem taxation. The answer to your question would depend upon who is the owner of the improvements, the corporation or the individual. If the lease…