Gwinnett County Bd. of Tax Assessors v. General Elec. Capital Computer Servs.

Prior litigation in favor of the taxpayer barred the tax board from denying that the taxpayer's subsequent applications for a freeport exemption because there was no change in the taxpayer's inventory or the applicable law.

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We granted certiorari to the Court of Appeals in General Electric Capital Computer Services v. Gwinnett County Board of Tax Assessors, 240 Ga. App. 629 523 SE2d 651 1999, cases involving the freeport exemption in OCGA § 48-5-48.2 b,1 to address whether the doctrine of collateral estoppel bars the litigation of a tax issue litigated in a prior year where there has been no significant factual change, but where there has been a change or development in the law. We conclude that collateral estoppel may not pose a bar under such circumstance; but, we affirm the decision of the Court of Appeals in these cases because there has not been such an intervening change or development in the law.

The history of this litigation is chronicled in the opinion of the Court of Appeals. In the early 1990′s, General Electric Capital Computer Services GECC wished to establish a Georgia warehouse facility to store testing and measuring equipment which it held for sale, lease, and rental to customers in and out of Georgia. GECC was assured its inventory would be exempt from ad valorem taxes under OCGA § 48-5-48.2, and GECC located its warehouse facility in Gwinnett County and was granted the promised freeport exemption for tax year 1992. However, in tax year 1993, the Gwinnett County Board of Tax Assessors denied GECC’s application for the freeport exemption. GECC appealed to the superior court, which, by a final order and judgment entered in June, 1994, reversed the Board’s decision.2 In 1995, the Court of Appeals affirmed without opinion the superior court’s 1994 decision.3

Gwinnett County Bd. of Tax Assessors v. General Elec. Capital Computer Servs.

Prior litigation in favor of the taxpayer barred the tax board from denying that the taxpayer's subsequent applications for a freeport exemption because there was no change in the taxpayer's inventory or the applicable law.

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