CITY OF COLLEGE PARK v. CLAYTON COUNTY

306 Ga. 301
CourtSupreme Court of Georgia
DecidedJune 24, 2019
DocketS19A0460
StatusPublished

This text of 306 Ga. 301 (CITY OF COLLEGE PARK v. CLAYTON COUNTY) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CITY OF COLLEGE PARK v. CLAYTON COUNTY, 306 Ga. 301 (Ga. 2019).

Opinion

306 Ga. 301 FINALCOPY

S19A0460. CITY OF COLLEGE PARK v. CLAYTON COUNTY et al.

MELTON, Chief Justice.

This is the second appearance of this case before this Court. In

the prior appeal, Clayton County v. City of College Park, 301 Ga. 653

(803 SE2d 63) (2017) (“Clayton County I”), we characterized the

controversy and set forth the facts as follows:

In this case involving the taxation of alcoholic beverages at Hartsfield-Jackson Atlanta International Airport (the “Airport”), Clayton County appeals from the trial court’s order denying its motion for judgment on the pleadings and granting the motion for partial summary judgment filed by the City of College Park. In seeking a judgment on the pleadings, Clayton County asserted, among other things, that the City of College Park’s claims were barred by sovereign immunity. . . . The Airport, which is owned and operated by the City of Atlanta, is located primarily within Clayton County (the “County”). Of the many businesses located within the Airport, some are located in the unincorporated sections of the County while other businesses are located in the County within the incorporated limits of the City of College Park (the “City”). In its complaint, the City asserts that since the 1983 enactment of OCGA § 3-8-1 (regulation and taxation of alcoholic beverages at public airports), it has not been receiving the proper amount of alcoholic beverage taxes to which it is entitled, and that the County improperly infringed on its authority to tax by instructing vendors to remit to the County 50% of the taxes due from the sale of alcohol in those portions of the Airport located within the City limits. The City and County disagree on the interpretation of OCGA § 3-8-1 (e) in light of the articles of the Georgia Constitution relating to the taxation power of counties and municipalities. The City asserts that, pursuant to OCGA § 3-8-1 (e), only it has authority to levy and collect taxes on the sale or use of alcoholic beverages within the corporate limits of the City, while the County can only levy and collect those taxes in the unincorporated areas of the County, and that within these parameters, the parties are then entitled to an equal division of all of the alcoholic beverage tax proceeds collected. The County asserts that OCGA § 3-8-1 (e) can only be construed to provide that the County is entitled to 50% of all alcohol tax revenues derived from within the City and 100% of the tax revenues derived from the unincorporated areas of the County. When the parties could not resolve their dispute, the City filed a complaint naming as defendants the County and two businesses that operate within the Airport, Mack II, Inc. and General Wholesale Company (the “taxpayer defendants”). The complaint sought an interlocutory and permanent injunction against the County (as well as the taxpayer defendants), and a declaratory judgment as to the City’s and County’s division and collection of alcoholic beverage taxes, as well as the taxpayer defendants’ payment of those taxes. The complaint also asserted claims against the County for an accounting, unjust enrichment, attorney fees, and damages. The taxpayer defendants filed a counterclaim for interpleader against the City, a cross-claim for interpleader against the County, and a petition for declaratory judgment. The County filed a motion for judgment on the pleadings, asserting that the City’s complaint and the taxpayer defendants’ cross-claims fail to state a claim and are barred by sovereign immunity, laches, OCGA § 36-1- 4 (“A county is not liable to suit for any cause of action unless made so by statute”), and OCGA § 36-11-1 (claims against counties must be presented within 12 months after they accrue or become payable). The City moved for partial summary judgment on its claims for declaratory judgment. Following a hearing, the trial court denied the County’s motion for judgment on the pleadings, finding that sovereign immunity does not apply to the City’s claims or the taxpayer defendants’ cross-claims for indemnity and contribution, that the doctrine of laches does not bar the City’s claims, and that to the extent the statute of limitation in OCGA § 36-11-1 applies, “it would merely limit the time window or amount of College Park’s damages” and not foreclose recovery altogether. The court granted the City’s motion for partial summary judgment on the declaratory judgment counts, finding that the Alcoholic Beverage Code, OCGA § 3-3-1 et seq., permits the City to impose alcoholic beverage tax only within its municipal limits and the County to impose such a tax only in the unincorporated areas of the County, that neither can impose and collect alcoholic beverage taxes within the other’s taxing jurisdiction, and that the taxpayer defendants must submit tax monies only to the entity authorized to collect the funds. The court found further that once the City and the County have exercised the power to impose and collect taxes within these guidelines, OCGA § 3-8-1 (e) requires that they then remit to the other half of the collected proceeds. (Footnotes omitted.) Id. at 653-655.

Ultimately, we vacated this judgment and remanded the case

for consideration of the “threshold question of whether sovereign

immunity applies at all in suits between political subdivisions of the

same sovereign (like the City and the County).” Id. at 656 (2).1

1 In doing so, we recognized that the question was a difficult one. We noted,

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Cite This Page — Counsel Stack

Bluebook (online)
306 Ga. 301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-college-park-v-clayton-county-ga-2019.