City of Atlanta v. City of College Park
292 Ga. 741
| Ga. | 2013Background
- In 1969, Atlanta and College Park entered an Agreement granting Atlanta the exclusive right to collect occupation taxes from airport businesses located within College Park.
- In 2007, College Park informed Atlanta it would no longer honor the Agreement and would seek to collect occupation taxes from airport businesses, including Atlanta’s proprietary operations.
- Atlanta filed a declaratory action in Fulton County Superior Court asking whether the 1969 Agreement controlled occupation taxation at the Airport within College Park.
- The trial court ruled the 1969 Agreement was unenforceable and that OCGA § 48-13-13(5) precluded College Park from taxing Atlanta’s proprietary operations.
- The Court of Appeals affirmed the trial court’s unenforceability ruling but held that ‘local authority’ did not include municipalities, permitting College Park to tax Atlanta’s proprietary operations.
- This Court affirmed, concluding that the term ‘local authority’ in OCGA § 48-13-13(5) does not include municipalities.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is Atlanta a 'local authority' under OCGA § 48-13-13(5)? | Atlanta contends it is a local authority exempt from taxation. | College Park argues Atlanta is not a local authority and may be taxed. | Not a local authority; majority so holds. |
| Does the 1969 Agreement control occupation taxes at the Airport within College Park? | The Agreement governs taxation of Airport businesses in College Park. | The Agreement is unenforceable. | Agreement unenforceable. |
| May College Park levy an occupation tax on Atlanta’s proprietary operations inside College Park? | If Atlanta is a local authority, it cannot be taxed. | If not a local authority, College Park may tax. | College Park may tax; Atlanta not a local authority. |
Key Cases Cited
- Clayton County Bd. of Tax Assessors v. City of Atlanta, 286 Ga. App. 193 (2007) (proprietary activities can be taxable when outside governmental function)
- Wright v. Fulton County, 169 Ga. 354 (1929) (public property exemptions from general taxes)
- Dispensary Commrs. of Terrell County v. Thornton, 106 Ga. 106 (1898) (public licenses/dispensaries tax exemptions standard)
- Morton v. Bell, 264 Ga. 832 (1995) (expressions matter when statutes omit explicit items)
- Slakman v. Continental Cas. Co., 277 Ga. 189 (2003) (statutory construction to determine legislature intent)
- Retention Alternatives, Ltd. v. Hayward, 285 Ga. 437 (2009) (presumption of statutory intent to harmonize with existing law)
- City of Atlanta v. City of College Park, 311 Ga. App. 62 (2011) (court distinguished local authority vs. municipality under OCGA § 48-13-13(5))