The City of Atlanta “the City” appeals from the superior court’s order granting summary judgment to the Clayton County Board of Tax Assessors “the Board” as to the taxability of five parcels of property leased by the City to Delta Air Lines, Inc. “Delta”, at Hartsfield-Jackson Atlanta International Airport “the Airport”. The court concluded that the parcels were not exempt from ad valorem taxes for the tax year 2005. We disagree and reverse, consolidating the appeals for disposition in a single opinion. The salient facts have been stipulated. The Board created the five parcels in 2005. In the ten years prior to 2005, the Board did not assess taxes on the properties that now comprise the parcels. The first parcel,1 known in the lease as the Delta Technical Operations Center “DTOC”, contains hangars and maintenance facilities used by Delta to repair and service aircraft, engines, and related equipment. The other four parcels comprise the Central Terminal Support Area “CTSA” Premises. The second parcel2 contains a ground support equipment building used to store and maintain tugs and other ground equipment used by Delta to transport baggage and move aircraft. The third parcel3 houses a cargo handling building that Delta uses to collect, process and distribute cargo carried on Delta aircraft. The fourth and fifth parcels4 contain buildings that house flight kitchens, one for international flights kitchen and one for domestic flights, which Delta subleases to Gate Gourmet, Inc., primarily to provide catering for Delta aircraft.
The Board assessed the parcels and issued the City a tax bill for 2005. The City paid the bill under protest and appealed the assessment to the county board of equalization “BOE”. The BOE ruled that the parcels were taxable, and the City appealed the BOE’s decision to the superior court pursuant to OCGA § 48-5-311. Ruling on cross-motions for summary judgment, the superior court concluded that the City had not met its burden of proving that it was entitled to an exemption5 under OCGA § 48-5-41 a 1 B i. That statute provides: No public real property which is owned by a political subdivision of this state and which is situated outside the territorial limits of the political subdivision shall be exempt from ad valorem taxation unless the property is: i Developed by grading or other improvements to the extent of at least 25 percent of the total land area and facilities are located on the property which are actively used for a public or governmental purpose.6 All five parcels are located in Clayton County “the County” and outside the territorial limits of the City. Further, as of January 1, 2005, more than 25 percent of the land area of each parcel was developed by grading or other improvements. Accordingly, the issue is whether the facilities located on the parcels are actively used for a public or governmental purpose. Property is “acquired, owned, leased, controlled, or occupied for public, governmental, and municipal purposes”7 if it is used “to acquire, establish, construct, expand, own, lease, control, equip, improve, maintain, operate, regulate, and police airports and landing fields for the use of aircraft.”8 In Clayton County Bd. of Tax Assessors v. City of Atlanta the “1982 case”,9 we determined that the foregoing language “encompasses all property reasonably and uniformly used for the public convenience and welfare to facilitate the effective operation of the air transportation facility.”10 In so holding, we relied in part on an analogous ruling by our Supreme Court in Sigman v. Brunswick Port Auth .:11
