City of Decatur v. Dekalb County

Plaintiffs appealed from an order granting summary judgment to defendant for the alleged breach of an intergovernmental agreement (IGA) entered into by the parties for the distribution of funds generated by a special sales tax instituted pursuant to the Homestead Option Sales and Use Tax Act (HOST), OCGA 48-8-100 et seq. At issue was whether the IGA was unconstitutional as violative of the Intergovernmental Contracts Clause of the Georgia Constitution, 1983 Ga. Const., Art. IX, Sec. III, Par. I(a). The court held that the IGA was not a valid intergovernmental contract where the IGA was neither a contract for services or one for the use of facilities, but a revenue-sharing contract. Therefore, summary judgment was properly granted to defendant.