William Allen Morton, Daisy Morton, James O. Newman, Robert W. Fisher and Mary F. Davis collectively “the taxpayers” appealed the 2002 property tax assessment on their Sea Island properties, contending that the Glynn County Board of Tax Assessors the “County” had improperly included in the appraisal of their real properties the separate value of their memberships in the Sea Island Club the “Club”, which they contend is nontaxable intangible personal property. These appeals progressed through the Glynn County Board of Tax Assessors and the Glynn County Board of Equalization to the superior court, which granted summary judgment to the County, and the taxpayers appeal that ruling. “Because this is an appeal from a grant of summary judgment, we must conduct a de novo review of the record to determine if there are genuine issues of material fact.” Citation omitted. Burt Dev. Co. v. Lee County Tax Assessors , 240 Ga. App. 451, 452 2 523 SE2d 81 1999. The Sea Island Company the “Company” owns the Cloister hotel and resort on Sea Island and also develops residential real estate throughout southeast Georgia. In 1998, it created the Club and limited access to the Cloister’s resort facilities1 to people who buy property owned or developed by the Company, and to resort guests. The Company hoped that this would increase property values on Sea Island and the Company’s other developments. Accordingly, since that time, the only way to join the Club has been to purchase real estate on Sea Island or in one of the Company-owned subdivisions on St. Simons.2 The Mortons own a home on Sea Island. Fisher and Davis own undeveloped property, as does Newman. All have Club memberships.
The Club membership, once purchased, is personal to the property owner in that members who sell their real property do not have to sell their memberships along with the land. Instead, the member can retain his membership and access to the Club’s facilities. But that member cannot sell his membership directly to a third party. If he ever chose to relinquish that membership, he must resign and allow the Club to sell it.
