Barsamian v. Glynn Cty. Bd of Tax Assessors

897 S.E.2d 893

BARSAMIAN

v.GLYNN COUNTY BOARD OF TAX ASSESSORS.

Laughlin et al.

v.Glynn County Board of Tax Assessors.

Clark et al.

v.Glynn County Board of Tax Assessors.

Henagan, III

v.Glynn County Board of Tax Assessors.

Feuss et al.

v.Glynn County Board of Tax Assessors.

Massey SI, LLC

v.Glynn County Board of Tax Assessors.

Waguespack as Trustee of the Donald James Waguespack Trust

v.Glynn County Board of Tax Assessors.

Greenwald, III et al.

v.Glynn County Board of Tax Assessors.

Burton, as Trustee of the 1998 Robert E. Burton Family Trust

v.Glynn County Board of Tax Assessors.

Rhodes et al.

v.Glynn County Board of Tax Assessors.

OCR 22, LLC

v.Glynn County Board of Tax Assessors.

Holley

v.GLYNN COUNTY BOARD OF TAX ASSESSORS.

Barsamian

v.Glynn County Board of Tax Assessors.

Burton, Trustee of the 1998 Robert E. Burton Family Trust

v.Glynn County Board of Tax Assessors.

Clark et al.

v.Glynn County Board of Tax Assessors.

Feuss et al.

v.Glynn County Board of Tax Assessors.

Greenwald, III et al.

v.Glynn County Board of Tax Assessors.

Henagan, III

v.Glynn County Board of Tax Assessors.

Holley

v.Glynn County Board of Tax Assessors.

Massey SI, LLC

v.Glynn County Board of Tax Assessors.

OCR 22, LLC

v.Glynn County Board of Tax Assessors.

Rhodes et al.

v.Glynn County Board of Tax Assessors.

Waguespack

v.Glynn County Board of Tax Assessors.

A23A1344

A23A1345

A23A1346

A23A1347

A23A1348

A23A1349

A23A1350

A23A1351

A23A1352

A23A1353

A23A1354

A23A1355

A23A1356

A23A1357

A23A1358

A23A1359

A23A1360

A23A1361

A23A1362

A23A1363

A23A1364

A23A1365

A23A1366

Court of Appeals of Georgia.

February 5, 2024

James L. Roberts IV, St. Simons Island, for Appellant.

Gregory Todd Carter, Amanda Lees Szokoly, Brunswick, for Appellee in A23A1344, A23A1345, A23A1346, A23A1347, A23A1348, A23A1349, A23A1350, A23A1351, A23A1352, A23A1353, A23A1354, A23A1355, A23A1362, A23A1363, A23A1364, A23A1365, A23A1366.

Gregory Todd Carter, Brunswick, for Appellee in A23A1356, A23A1357, A23A1358, A23A1359, A23A1360, A23A1361.

Gobeil, Judge.

In these 23 companion cases, a group of property owners appealed the 2015 and 2017 property tax assessments of their quarter interest units in the Cloister Ocean Residences ("COR") located on Sea Island, contending in pertinent part that the Glynn County Board of Tax Assessors (the "County") improperly included in the appraisal of their real property interests the separate value of their memberships in the Sea Island Club, which the property owners contend is nontaxable intangible personal property. The appeals progressed through the Glynn County Board of Equalization ("BOE") to the Superior Court of Glynn County. In Case Nos. A23A1344 through A23A1355, Bonnie A. Barsamian (A23A1344), John C. Laughlin and Gail H. Laughlin (A23A1345),¹ Peter S. Clark and Stacy W. Clark (A23A1346), Charles S. Henagan, III (A23A1347), Charles E. Feuss and Linda U. Feuss (A23A1348), Massey SI, LLC (A23A1349), Donald J. Waguespack, as Trustee of the Donald James Waguespack Trust (A23A1350), Taylor C. Greenwald, III and Anne D. Greenwald (A23A1351), Maxine H. Burton, as Trustee of the 1998 Robert E. Burton Family Trust (A23A1352), John P. Rhodes and Lisa T. Rhodes (A23A1353), OCR 22, LLC (A23A1354), and Leigh Pierce Holley (A23A1355) (collectively, the "2017 Taxpayers"), appeal from the superior court’s denial of their motion for partial summary judgment and the grant of the County’s motion for summary judgment with respect to the County’s 2017 valuation of their property interests. In Case Nos. A23A1356 through A23A1366, Bonnie A. Barsamian (A23A1356), Maxine H. Burton, as Trustee of the 1998 Robert E. Burton Family Trust (A23A1357), Peter S. Clark and Stacy W. Clark (A23A1358), Charles E. Feuss and Linda U. Feuss (A23A1359), Taylor C. Greenwald, III and Anne D. Greenwald (A23A1360), Charles S. Henagan, III (A23A1361), Leigh Pierce Holley (A23A1362), Massey SI, LLC (A23A1363), OCR 22, LLC (A23A1364), John P. Rhodes and Lisa T. Rhodes (A23A1365), and Donald J. Waguespack, as Trustee of the Donald James Waguespack Trust (A23A1366) (collectively, the "2015 Taxpayers"), appeal from the superior court’s denial of their motion for partial summary judgment and the grant of the County’s motion for summary judgment with respect to the County’s 2015 valuation of their property interests. For the reasons that follow, we affirm.

"Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. We review a grant or denial of summary judgment de novo and construe the evidence in the light most favorable to the nonmovant." Havenbrook Homes, LLC v. Infinity Real Estate Investments, Inc., 356 Ga. App. 477, 478, 847 S.E.2d 840 (2020) (citations and punctuation omitted).

Background Facts

The stated intent of Georgia’s tax laws is to tax properties at their fair market value. See OCGA §§ 48-5-1, 48-5-6 ("[a]ll property shall be returned for taxation at its fair market value … "). The County is tasked with ensuring "that all taxable property within the county is assessed and returned at its fair market value and that fair market values as between the individual taxpayers are fairly and justly equalized so that each taxpayer shall pay as nearly as possible only such taxpayer’s proportionate share of taxes." OCGA § 48-5-306 (a). Under OCGA § 48-5-2 (3), the fair market value of a property is defined as "the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm’s length, bona fide sale." As a result, "Georgia imposes taxes upon all owners of nonexempt real and tangible personal property at the property’s fair market value." Morton v. Glynn County Bd. of Tax Assessors, 294 Ga. App. 901, 904 (1), 670 S.E.2d 528 (2008).

The Georgia Department of Revenue ("DOR") has adopted regulations, compiled as an "Appraisal Procedures Manual" ("APM"), to assist county tax officials in appraising tangible real and personal property for ad valorem tax purposes. Ga. Comp. R. & Regs. r. 560-11-10-.01 (1). The APM defines taxable "red property" as "the bundle of rights, interests, and benefits connected with the ownership of real estate. Real property does not include the intangible benefits associated with the ownership of real estate, such as the goodwill of a going business concern." Ga. Comp. R. & Regs. r. 560-11-10-.02 (1) (x). The APM lists the "sales comparison approach," used by the County in the instant cases, as an appropriate method of appraising real property. Ga. Comp. R. & Regs. r. 560-11-10-.09 (4). The APM directs appraisal staff utilizing this method to estimate value by comparing the property in question to similar properties that have recently sold. See Ga. Comp. R. & Regs. r. 560-11-10-.09 (4) (b) ("The appraisal staff shall use the following four steps when applying the sales comparison approach: market research and verification, selecting appropriate units of comparison, making reasonable adjustments based on the market, and applying the adjusted comparison units to the subject of the appraisal.").

The Sea Island Club is a private recreational club whose members are given exclusive access to its beach, dining, golf, tennis, spa, and fitness facilities. There are three different categories of membership: full, beach and sports, and invitational. Full membership, which includes access to all facilities and covers greens fees for the golf courses, is only available to owners of real property on Sea Island or within one of its designated communities. All three categories of membership require submission of an application to the Sea Island Company,² which must be approved by a membership committee. In 2017, an applicant for a full membership was required to pay a $100,000 deposit, which would be fully refundable in the event the member later terminated his or her membership. In addition to the deposit, each full membership holder is required to pay annual dues, which totaled $15,496 in 2017, plus an additional annual member fee of $1,100 for active members who own property on Sea Island. When an individual with a full membership, sells his or her Sea Island property, he or she can transfer the membership to one of his or her adult, children, retain it for himself or herself, or transfer it back to the Sea Island Company.

Each of the 2015 Taxpayers and the 2017 Taxpayers owns at least one Quarter Ownership Interest³ of certain condominium units in the COR. Purchasers of Quarter Ownership Interests in the COR also are eligible to apply for and, if approved, acquire full membership in the Sea Island Club with some important differences from a traditional full membership. First, the $100,000 refundable membership deposit is waived. Second, the membership dues owed are a quarter of those owed by a traditional full member, and totaled $4,149 per year in 2017. Nevertheless, owners of each COR quarter interest are permitted to utilize their Sea Island Club memberships for the entire year as opposed to just a quarter of the year even though they pay only a quarter of the annual dues.

As relevant here, the Declaration of Condominium for the COR (the "Declaration") expressly provides that memberships held by owners of a quarter interest are not transferable, that COR sales terminate memberships, and that purchasers must then apply anew for club membership:

Membership in the Sea Island Club held by an Owner of a Quarter Ownership Interest as a result of ownership of such Quarter Ownership Interest or Residence Unit shall terminate at such time as the Owner conveys, transfers[,] or otherwise disposes of such Quarter Ownership Inter-est. Such membership is not transferable or assignable. The purchaser from any Owner of a Quarter Ownership Interest may, as determined by Sea Island Company, be provided an opportunity to apply for and, if approved for membership by Sea Island Company, acquire a membership in Sea Island Club, in accordance with the terms of the Sea Island Club Membership Program and Rules and Regulations then

...