Hamilton schools sues city for unpaid taxes
CHATTANOOGA, Tenn. (AP) – The Hamilton County Board of Education has filed suit against the City of Chattanooga over a disputed $11 million in unpaid liquor taxes.
The Chattanooga Times Free Press (http://bit.ly/1gZaLaK) reports the lawsuit on Friday spurred an offer from the city and a counterproposal on Monday from the school district, both of which were rejected.
The newspaper reports the city owes more than $11 million to the school district after not paying it a portion of the liquor tax for nearly a decade.
Chattanooga officials started paying the tax last year, but there has been disagreement on how to take care of the past due amount.
The liquor tax has created confusion across the state. At least 15 other cities also owe money to school districts.
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Information from: Chattanooga Times Free Press, http://www.timesfreepress.com
