With the Georgia Court of Appeals’ recent decision, T-Mobile’s $11.4 million sales tax refund claim continues to be viable. The court concluded that the lower, trial court used an incorrect standard in its review. As such, the Court of Appeals vacated the decision and remanded the case back to the trial court for them to review the appeal using the proper standard of review.
“... nothing in our law gives the reviewing courts the right to reconsider those factual findings and make factual findings of their own.”
Vacillating Procedural History
As set forth in its original refund request and subsequent appeals, T-Mobile maintains that the equipment it purchased to build a broadband internet network in Georgia was “computer equipment” and not voice technology. This classification and other statutory requirements having been met, T-Mobile contends that the sales tax paid on the equipment qualifies for GA’s High-Tech exemption.
However, the GA Department of Revenue disagreed with T-Mobile’s classification and denied the refund request, concluding that the equipment was actually voice technology and not computer equipment.
Following the denial, T-Mobile appealed to the Georgia Tax Tribunal. The Tribunal agreed with T-Mobile and reversed the DOR’s decision. Following the Tribunal’s decision, the GA DOR appealed to the Fulton County Superior Court for its review. In siding with the DOR, the Superior Court reversed the Tribunal’s decision and held that the High-Tech equipment was actually “other voice transport technology”.
With the Court of Appeals remand order, it will be interesting to see what determination the trial court reaches this time around - “clearly erroneous” facts established by the Tribunal and a denial, or proper deference given, a resulting determination of “computer equipment” and an approval.
Georgia DOR Guidance
Thinking of filing a GA sales tax refund claim similar to T-Mobile? The GA DOR has since issued related reporting guidance. On October 21, 2021, it released Policy Bulletin SUT-2021-03 which provides guidance on the reporting requirements for High-Tech companies that were issued a certificate of exemption pursuant to O.C.G.A. § 48-8-3(68).