City of Atlanta v. City of College Park
311 Ga. App. 62
| Ga. Ct. App. | 2011Background
- This is a declaratory judgment action in Fulton County challenging which city may tax airport businesses located within College Park's limits.
- The 1969 Agreement gave exclusive jurisdiction over permits, licenses, and related matters to Atlanta for airport buildings, but allowed College Park to tax entities within its limits for other property subject to law.
- Atlanta previously collected an occupation tax from airport businesses operating in College Park, including revenues from its proprietary operations.
- In 2007 College Park asserted it was the sole authority to levy occupation and alcoholic beverage taxes within its city limits and notified affected businesses, prompting Atlanta to sue for declaratory relief.
- The trial court held that only College Park could levy certain taxes at the airport within College Park, that Atlanta was a local authority exempt from liability for its proprietary operations, and that College Park alone could impose alcoholic beverage taxes; the court reserved other issues.
- On appeal, the Georgia Court of Appeals affirmed some rulings, vacated others, and remanded, with College Park prevailing on occupation taxes and alcoholic beverage tax questions in part and Atlanta prevailing on other issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to tax within College Park | Atlanta argues 1969 Agreement authorizes extraterritorial taxation. | College Park asserts OCGA 48-13-6(b) authorizes its tax within its limits, not Atlanta's extraterritorial reach. | Agreement unenforceable to authorize extraterritorial tax; College Park authorized to tax within its limits. |
| Atlanta as local authority exemption | Atlanta should be liable for its proprietary airport activities. | Atlanta is a local authority exempt from such taxes. | OCGA 48-13-13(5) ambiguity; Atlanta not exempt; College Park may tax airport activities. |
| Alcoholic beverage taxes at the airport | Atlanta or College Park may tax sale, storage, distribution of alcohol within College Park. | Only College Park may impose those alcoholic beverage taxes within its limits. | The argument sought a declaratory judgment with no justiciable controversy; vacated and remanded to dismiss Count 6. |
| Conflict between charters and general law | Section 7-105(f) of Atlanta's charter limits College Park's taxing authority. | OCGA 48-13-6(b) supersedes local charters on occupation taxes. | Section 7-105(f) ineffective to divest College Park; College Park authorized to levy occupation tax within its limits. |
Key Cases Cited
- City of Atlanta v. Gower, 216 Ga. 368 (1960) (taxation power must be granted by general law or constitution)
- Schneider v. City of Folkston, 207 Ga. 434 (1950) (one bill cannot amend two different subjects; statutory assignments)
- Sawnee Elec. Membership Corp. v. Ga. Public Svc. Comm., 273 Ga. 702 (2001) (plain language interpretation and absurdity avoidance)
- Wright v. Fulton County, 169 Ga. 354 (1929) (local government taxation for proprietary operations)
- Effingham County Bd. of Commrs. v. Effingham County Indus. Dev. Auth., 286 Ga.App. 748 (2007) (vacate advisory declaratory judgments when no justiciable controversy)