Georgia Motor Trucking Ass'n v. Georgia Department of Revenue
301 Ga. 354
Ga.2017Background
- In 2015 Georgia enacted HB 170 (Transportation Funding Act), which changed motor-fuel-related taxes: it repealed one distributor tax, raised per-gallon distributor rates, exempted gasoline from state sales tax but not local sales/use taxes, and capped local motor-fuel sales tax at 1% (not to exceed $3/gal).
- Plaintiffs (trucking association and three carriers) sued state officials seeking mandamus, declaratory and equitable relief, and attorneys’ fees, arguing local sales/use taxes on retail motor-fuel sales are "motor fuel taxes" under the Georgia Constitution and thus must be (or an equal amount must be) appropriated for roads and bridges.
- The trial court dismissed: holding mandamus was unavailable because refund statutes provided an adequate remedy and officials had no duty to appropriate local receipts for roads; alternatively, it ruled the challenged local taxes were not constitutional “motor fuel taxes.”
- The Supreme Court of Georgia affirmed dismissal, holding the constitutional phrase “motor fuel taxes” refers to the traditional per-gallon distributor excise taxes (historically earmarked for highways), not generally applicable retail sales/use taxes that incidentally apply to motor fuel.
- The Court reasoned by textual plain-meaning principles and historical context: the earmarking practice traced to taxes on distributors (Motor-Fuel Tax Law) and the 1952/1960/1983 constitutional provisions intended those distributor taxes, not state or local retail sales taxes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether local sales/use taxes on retail motor-fuel sales are “motor fuel taxes” under Ga. Const. Art. III, Sec. IX, Par. VI(b) | Local sales/use taxes on motor fuel fall within “motor fuel taxes,” so proceeds must be (or equal amounts must be) appropriated for roads/bridges | “Motor fuel taxes” means per‑gallon excises on distributors (Motor‑Fuel Tax Law); retail sales/use taxes are distinct and not constitutionally earmarked | Held: Not included — the constitutional phrase refers to distributor per‑gallon taxes, not general retail sales/use taxes |
| Whether plaintiffs may obtain mandamus to compel state officials to earmark or escrow local sales/use tax proceeds for roads | Mandamus appropriate because officials have a duty to ensure constitutional appropriation of motor‑fuel-derived revenues | Officials have no duty regarding local spending of local tax revenues; thus no clear legal right to mandamus relief | Held: Mandamus fails because no clear duty exists to appropriate local sales/use tax proceeds for highways |
| Whether OCGA refund statute provides adequate remedy making mandamus inappropriate | Plaintiffs: refund statute inadequate because they seek prospective dedication/appropriation, not refunds | Defendants: refund procedure is adequate alternative remedy | Held: Refund statute is not an adequate remedy for plaintiffs’ requested prospective relief, but mandamus still fails on the merits (no duty) |
| Whether plaintiffs’ declaratory/equitable relief and fee claims survive if mandamus fails | Plaintiffs: declaratory and equitable relief appropriate to enforce constitutional appropriation | Defendants: those remedies depend on existence of duty to appropriate and are barred if no duty exists | Held: Those claims fail as they depend on the same nonexistent duty; attorneys’ fees fail as derivative |
Key Cases Cited
- Blum v. Schrader, 281 Ga. 238 (Ga. 2006) (apply ordinary meaning to constitutional text)
- Deal v. Coleman, 294 Ga. 170 (Ga. 2013) (read constitutional text in ordinary, contextual sense)
- Collins v. Mills, 198 Ga. 18 (Ga. 1944) (constitutional provisions construed in light of conditions at adoption)
- Gregory v. Hamilton, 215 Ga. 735 (Ga. 1960) (1952 amendment re: motor fuel taxes not self‑executing; discussion of historical earmarking)
- Brown v. Wright, 231 Ga. 686 (Ga. 1974) (constitutional amendment implementing motor‑fuel earmark)
- Standard Oil Co. of Kentucky v. State Revenue Comm., 179 Ga. 371 (Ga. 1934) (retail sales tax applied to gasoline)