Terrell County Board of Tax Assessors v. Goolsby
324 Ga. App. 535
Ga. Ct. App.2013Background
- Jason and Brian Goolsby owned 448.5 acres and entered a ten‑year conservation use covenant under OCGA § 48‑5‑7.4 effective Jan 1, 2007 to obtain current‑use tax assessment.
- After entering the covenant they began operating “Goolsby Farm Supply,” a commercial grain business on part of the property; the exact nature of the business is unclear because the trial hearing transcript is not in the record.
- Terrell County Board of Tax Assessors notified the Goolsbys that obtaining a business license and operating a commercial business breached their conservation use covenant; the county board of equalization upheld the breach finding.
- The superior court ruled the Goolsbys had not breached the covenant; the board appealed. The board’s appeal timing was contested but an extension made the notice of appeal timely.
- The appellate court concluded the superior court erred in stating that operating any business on the property could never breach the covenant, and remanded for reconsideration consistent with the correct statutory construction.
Issues
| Issue | Plaintiff's Argument (Goolsbys) | Defendant's Argument (Board) | Held |
|---|---|---|---|
| Whether the board’s notice of appeal was timely | Board’s notice was timely due to superior court extension | Notice was untimely; appeal should be dismissed | Timely: court construed the extension under OCGA § 5‑6‑39 to render the Dec. 27 notice timely |
| Whether operating Goolsby Farm Supply breached the conservation covenant | No breach — primary use remains agricultural; business is incidental/consistent with primary use | Breach — operating a separate commercial business on the property disqualifies current‑use treatment under OCGA § 48‑5‑7.4(b)(1) | Operating a business can breach the covenant if it is a separate, non‑incidental business that is detrimental or in conflict with the property’s primary qualifying use; trial court’s contrary statement was legal error |
| Whether the statute’s prohibition only applies at enrollment | Goolsbys: prohibition, if any, applies only at time of enrollment | Board: covenant requires continuing qualifying use for entire 10‑year period; subsequent business can breach | Statute and regulations require continuous qualifying use during covenant; subsequent operation of a disqualifying business can constitute a breach |
| Effect of absence of trial transcript on review | Goolsbys: factual findings support trial court judgment (some testimony unreproduced) | Board: appellate review may consider legal error in trial court’s construction | Appellate court remanded for reconsideration; concurrence notes presumption that unrecorded evidence supports trial court findings and that, absent the erroneous legal conclusion, affirmance might be required |
Key Cases Cited
- Wheeler County Bd. of Tax Assessors v. Gilder, 256 Ga. App. 478 (application of law to undisputed facts is de novo)
- Morrison v. Claborn, 294 Ga. App. 508 (statute granting current‑use assessment affords tax advantage and must be construed in board’s favor)
- Jim Ellis Atlanta v. Adamson, 283 Ga. App. 116 (order denying reconsideration not directly appealable)
- Prince v. Bailey Davis, LLC, 306 Ga. App. 59 (statutory and regulatory construction principles; reconcile provisions to effectuate legislative intent)
- Lamad Ministries v. Dougherty County Bd. of Tax Assessors, 268 Ga. App. 798 (deference to trial court factual findings absent clear error)
- Stegeman v. Heritage Bank, 304 Ga. App. 172 (presumption of regularity in trial court proceedings)
- Siratu v. Diane Investment Group, 298 Ga. App. 127 (in absence of transcript, appellate court assumes record supports trial court findings)