Washington County wins lawsuit against Johnson City for tax

JONESBOROUGH, Tenn. (AP) – Reversing a trend in similar cases elsewhere in Tennessee, a chancellor has ruled in favor of Washington County in its lawsuit to share in Johnson City’s liquor-by-the-drink tax revenues.

News outlets report Chancellor E.G. Moody issued a memorandum and order last week, ruling for Washington County as it sought back payment from Johnson City for taxes collected since the city’s voters approved liquor-by-the-drink in 1980.

The lawsuit seeks $3.4 million but Erick Herrin, the attorney representing Johnson City in the suit, tells the Kingsport Times-News (http://bit.ly/2fcUXtG ) that Moody’s order calls for a hearing to be held to determine the actual amount of money the county would be awarded.

Sullivan County earlier this year lost a similar lawsuit seeking back payments of the same taxes from Kingsport and Bristol cities.