New Cingular Wireless PCS, LLC v. Georgia Dept. of RevenueAnnotate this Case
The Georgia Department of Revenue denied New Cingular Wireless PCS, LLC; Chattanooga MSA LP; Georgia RSA No. 3, LP; and Northeastern Georgia RSA Limited Partnership (collectively “AT&T”) a tax refund. The appellants alleged that from November 1, 2005 until September 7, 2010, they sold wireless Internet access services to Georgia customers, which were exempt from state sales tax under OCGA 48-8-2. In November 2010, the appellants filed refund claims with the Department for sales tax that they claimed was, until September 2010, erroneously charged to Georgia customers on the purchase of wireless Internet access service. The Department officially refused to pay the requested refund claims. On April 17, 2015, the appellants filed their complaint to challenge this denial. The Department answered and moved to dismiss for a lack of subject-matter jurisdiction and the failure to state a claim, because: (1) appellants did not reimburse the alleged illegally collected sales tax to customers before seeking a refund from the Department, in violation of Department Regulation 560-12-1-.25; (2) the appellants lacked standing to file sales-tax-refund claims on behalf of customers for periods prior to May 5, 2009; and (3) the action was barred by Georgia class-action law. Following a hearing on the motion to dismiss, the trial court granted it on all three grounds. The Court of Appeals affirmed. The Georgia Supreme Court granted certiorari review to determine whether Ga. Comp. R. & Regs. R. 560-12-1-.25 (2) properly required a dealer seeking a sales tax refund reimburse its customer before applying for a refund from the Department of Revenue. The Supreme Court determined this was not a requirement, and that the Court of Appeals’ opinion had to be vacated in part and reversed in part, and that the case remanded with direction.