Hamilton Co. schools sue city for back taxes - WRCBtv.com | Chattanooga News, Weather & Sports

Hamilton Co. schools sue city for back taxes

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CHATTANOOGA, TN (Times Free Press) - With talks stalled and a potential change in state law threatening the mounting tab owed to the Hamilton County school system over past-due liquor taxes, school officials filed a lawsuit against Chattanooga on Friday as a safeguard.

School officials said talks were going nowhere with the city.

And details of a bill pushed by the state comptroller and backed by the Tennessee Municipal League have changed frequently in recent days. But it's clear the legislation could impact the Hamilton County school system and others across the state that say they went years without their fair share of a state-mandated liquor-by-the-drink tax.

"Some of these proposals would have actually been very helpful to our claim. Some of them would have sought to eliminate our claim altogether," said school board attorney Scott Bennett. "In view of the uncertainty, we believed that the prudent course of action would be to file suit to protect that claim."

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