Hamilton schools to sue city for unpaid taxes

Hamilton schools to sue city for unpaid taxes

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CHATTANOOGA (AP) - The Hamilton County Board of Education has voted to sue the City of Chattanooga over $11 million in unpaid liquor taxes.

The Chattanooga Times Free Press reports school board attorney Scott Bennett said after the 8-1 vote on Thursday evening that he would file the suit in coming days in Chancery Court.

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 from unpaid liquor taxes.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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