East West Exp., Inc. v. Collins, s. S94A1040

Decision Date31 October 1994
Docket NumberS94X1041,Nos. S94A1040,s. S94A1040
Citation264 Ga. 774,449 S.E.2d 599
PartiesEAST WEST EXPRESS, INC. v. COLLINS. COLLINS v. EAST WEST EXPRESS, INC.
CourtGeorgia Supreme Court

W. Pitts Carr, Carr, Tabb & Pope, David H. Pope, Carr, Tabb & Pope, Atlanta, for East West Express, Inc.

Michael J. Bowers, Atty. Gen., Warren R. Calvert, Sr. Asst. Atty. Gen., Dept. of Law, Harold D. Melton, Asst. Atty. Gen., Daniel M. Formby, Sr. Asst. Atty. Gen., Atlanta, for Marcus E. Collins.

BENHAM, Presiding Justice.

East West Express, Inc. (East West) provides interstate trucking services with vehicles registered and titled in Georgia. Its primary business is transporting materials to Georgia from Florida; to California and Arizona from Georgia; and to Florida, Georgia, and South Carolina from California. East West instituted this action against State Revenue Commissioner Marcus Collins, seeking a declaratory judgment holding OCGA §§ 48-5-442 to 48-5-445 and 48-5-471 unconstitutional because they do not provide for apportionment of ad valorem taxes on motor vehicles engaged in interstate commerce. East West moved for summary judgment and Collins moved to dismiss the action. Treating Collins' motion to dismiss as a motion for summary judgment, the trial court awarded summary judgment to Collins and denied East West's motion.

In determining that East West was not entitled to the relief it sought, the trial court held that the statutes in question do not prohibit the apportionment of ad valorem taxes, and that authority to apportion such taxes is vested in the State Revenue Commissioner, not in local tax authorities. East West appealed the trial court's refusal to hold the statutes unconstitutional; Collins cross-appealed the finding by the trial court that the power to apportion those taxes was vested in the State Revenue Commissioner.

1. Since the U.S. Supreme Court has ruled that the Due Process and Commerce Clauses of the United States Constitution require that ad valorem tax on property engaged in interstate commerce must be apportioned if the taxpayer bears its burden of demonstrating that its property has acquired a tax situs in another state (see, e.g., Central R. Co. of Pa. v. Pennsylvania, 370 U.S. 607, 82 S.Ct. 1297, 8 L.Ed.2d 720 (1962)), OCGA §§ 48-5-442 through 48-5-445 and 48-5-471 would be unconstitutional if they prohibited such apportionment. While it is true that the statutes do not specifically authorize the apportionment of ad valorem taxes on motor vehicles engaged in interstate commerce, neither do they expressly prohibit such apportionment. Our task, therefore, is to examine the statutes to determine whether they may fairly be read to permit apportionment. In doing so, we bear in mind the maxim that a construction that gives effect to statutes is preferred to one that invalidates them. Brown v. State Merit System, 245 Ga. 239(1), 264 S.E.2d 186 (1980).

The statutory scheme for ad valorem taxation of motor vehicles provides that every vehicle owned in this state on January 1 is subject to ad valorem taxation (OCGA § 48-5-471); that the State Revenue Commissioner shall prepare a uniform evaluation of vehicles for use as the taxable value of the vehicles (OCGA § 48-5-442); and that the tax shall be at the assessment level and mill rate levied by the taxing authority for the previous calendar year. OCGA § 48-5-443. Without further consideration, it would appear that no apportionment is available: the State Revenue Commissioner sets a uniform value and the local taxing authorities tax at that level. However, statutes are not to be construed in a vacuum, but in relation to other statutes of which they are a part, and all statutes relating to the same subject matter are to be construed together, and harmonized wherever possible. Ryan v. Commrs. of Chatham County, 203 Ga. 730(1), 48 S.E.2d 86 (1948).

It is appropriate, therefore, to consider how this state has addressed the issue of apportionment of ad valorem taxes on other types of property used in interstate commerce. Such apportionment is provided for with regard to railroad cars and aircraft by OCGA §§ 48-5-519 et seq. and 48-5-540 et seq., respectively. As to both those species of personal property, it is the valuation of the property which is adjusted for the purpose of apportionment.

Taking valuation as a key, we turn now to the statutes dealing with ad valorem taxation of motor vehicles. Although they do not specifically provide a formula for apportionment as do the statutes dealing with railroad cars and aircraft, there is an existing statutory procedure for challenging the valuation placed on a motor vehicle for ad valorem tax purpose: "Any owner who contests the value assessment of a motor vehicle ... may appeal such assessed value as provided for in Code Section 48-5-311...." OCGA § 48-5-450. In subsection (e) of § 48-5-311, provision is made for the county board of tax assessors to review the valuation of...

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10 cases
  • FULTON COUNTY TAX COM'R v. General Motors, No. A98A1694
    • United States
    • United States Court of Appeals (Georgia)
    • September 18, 1998
    ...of motor vehicles, GM used the proper procedure against the Tax Commissioner to contest the assessment. See East West Express v. Collins, 264 Ga. 774, 775, 449 S.E.2d 599 (1994); Blackmon v. Scoven, 231 Ga. 307, 309-310(2), 201 S.E.2d 474 (1973). The Tax Commissioner stands in the shoes of ......
  • Tippins Bank & Trust Co. v. Southern General Ins. Co.
    • United States
    • Supreme Court of Georgia
    • December 4, 1995
    ...relating to the same subject matter are to be construed together, and harmonized wherever possible. East West Express, Inc. v. Collins, 264 Ga. 774, 775(1), 449 S.E.2d 599 (1994). It is undisputed that Insurer did not provide any notice of its refusal to renew Insured's policy. To the contr......
  • Hendry v. Hendry
    • United States
    • Supreme Court of Georgia
    • November 5, 2012
    ...in isolation, but rather, we read it in the context of the other statutory provisions of which it is a part. East West Express v. Collins, 264 Ga. 774, 775(1), 449 S.E.2d 599 (1994). “[A]ll statutes relating to the same subject matter are to be construed together, and harmonized wherever po......
  • GECC v. GWINNETT COUNTY BD., No. A99A1970
    • United States
    • United States Court of Appeals (Georgia)
    • October 19, 1999
    ...the taxpayer's showing and make appropriate (grant of freeport exemption if all conditions are satisfied).' East West Express v. Collins, [264 Ga. 774, 775-776, 449 S.E.2d 599 ].)." 2. In Case No. A99A1970 GECC contends that the superior court erred in failing to grant it attorney fees unde......
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