Chapter 10
1. (1) h
(2) f
(3) j
(4) a
(5)g
(6) i
(7) e
(8) d
(9) b
(10) c
2. personal property used in business’ shall mean tangible goods and chattels use or held for use by any business conducted for profit but doesn’t include goods and chattels affixed to real property as to become part thereof and not to be removable without the material’s injury. If these cranes come within the exception quoted, then they must be taxed as real estate. If they are found to not come within this exception, they are properly taxable as personal property used in business under the Business Personal Property Tax Act.
3. A fixture is defined as personal property that has become attached or annexed to real estate; a fixture generally is treated as part of real estate. There are certain things considered when determining whether or not the item will be considered as a fixture. First, it will need to be determined whether the fixture is included in the real estate for tax purposes. Second, it would need to be determined if the sale of the real estate will include the item of property. Third, it will need to be determined whether the item is covered by the mortgage and fourth, if the item belongs to the landowner, not the tenant that could be terminated of a lease. Based on information above, although the cable was annexed to the telephone poles, it was based on a lease, it did not belong to the landlord owner, therefore it could not qualify as a fixture. In addition, the cable is not included in the value of the property nor is it part of a security given by mortgagor. The cable is an item that can be removed in which will not change the value of the