This is the second appearance of this case before the Court.1 The Medical Center Hospital Authority (“the Authority”) sued the Columbus Board of Tax Assessors (“the Board”), seeking a declaration that its leasehold interest in certain property, known as Spring Harbor at Green Island (“Spring Harbor”), was exempt from ad valorem taxation.
[. . .]
In its sole enumeration of error, the Board contends the trial court erred in granting summary judgment in the Authority’s favor because Spring Harbor cannot be considered public property for the purpose of ad valorem taxation where its operational and financial structure is such that it is owned and managed by Columbus Regional, a private entity. It further argues that because ownership of Spring Harbor will revert back to Columbus Regional at the end of the lease, and not to the Authority, the ultimate beneficiary is a private entity rather than the public, and the General Assembly’s intent was not to extend public tax-exempt status to a private entity in this way. We conclude the trial court properly found that the Authority’s leasehold interest is “public property” exempt from ad valorem taxes.
[. . .]
Moreover, as the trial court noted, the fact that the Authority held only a leasehold interest in Spring Harbor does not alter this outcome. “A leasehold is an interest in the land less than the fee; it is severed from the fee and is classified for tax purposes as realty under OCGA § 48-5-3.” Douglas County v. Anneewakee, Inc., 179 Ga. App. 270, 274 (3), 346 S.E.2d 368 (1986), citing Delta Air Lines v. Coleman, 219 Ga. 12, 16 (1), 131 S.E.2d 768 (1963). As the case law makes clear, even where the Authority does not hold fee simple title to the property, this does not negate the Authority’s tax-exempt status of its property interest as “public property.” Sigman, 214 Ga. at 335 (2), 104 S.E.2d 467. In other words, the Authority does not have to own the real estate to be entitled to public property tax exempt status. The Authority’s leasehold interest in the real property can still be exempt from property taxes based on an exemption to which only the Authority is entitled. Cf. Anneewakee, Inc., 179 Ga. App. at 274 (3), 346 S.E.2d 368; see also GeorgiaCarry. Org, v. Atlanta Botanical Garden, 306 Ga. 829, 836-839 (3), 834 S.E.2d 27 (2019) (analyzing Delta Air Lines v. Coleman, Anneewakee, Inc., and Columbus II, in holding that, with regard to a leasehold interest, the public or private nature of property depends on the holder of the leasehold interest). Therefore, as a public entity, the Authority’s leasehold interest in Spring Harbor controls, and thus, as established above, Spring Harbor is public property for taxation purposes.
Accordingly, the Authority’s leasehold interest in Spring Harbor under the lease agreement is exempt from ad valorem taxation as “public property,” and thus we affirm the trial court’s grant of summary judgment to the Authority.6
Menu