Farragut, Knox owe more than $1M to schools
KNOXVILLE, Tenn. (AP) – Officials in Farragut and Knox County say they owe the local school district more than $1 million in tax revenue.
Knox County Finance Director Chris Caldwell told the Knoxville News Sentinel (http://bit.ly/GPsyXS) that the town of Farragut owes the school system at least $1.1 million while Knox County owes around $350,000.
The funding comes from the state’s tax on mixed drinks. The tax is collected by restaurants and bars and sent to the state Department of Revenue, which keeps half and sends half back to the municipality where the businesses are located.
The Department of Revenue says the municipalities are supposed to keep 50 percent and send the rest to the local school system.
Officials say they are working together to find out how to correct the problem.
