City of Chattanooga contests school system taxes lawsuit - WRCBtv.com | Chattanooga News, Weather & Sports

City of Chattanooga contests school system taxes lawsuit

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CHATTANOOGA, TN (Times Free Press) - After agreeing to pony up almost $12 million in past due taxes, the city of Chattanooga has filed a motion claiming the Hamilton County Board of Education doesn't have the right to file a lawsuit to recover the liquor-by-the-drink taxes.

The city's motion, filed today in Hamilton County Chancery Court, claims the taxes are the state's property and the state should have to join with the county to recover the money.

"The school board has ignored the state's prior interest in the outcome of this matter and its exclusive right to bring it," the lawsuit states. "The school board doesn't have a standing as a result."

School board attorney Scott Bennett said he doesn't think the city has a claim and this is a tactic to stall the lawsuit.

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