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Blount School District Votes To Sue Over Tax

Blount School District Votes To Sue Over Tax

CREATED May 27, 2014

MARYVILLE, Tenn. (AP) - School officials in Blount County have voted to sue two cities over unpaid liquor taxes.

Media outlets reported that the Blount County Board of Education decided on Friday to authorize its attorney to file suit against Maryville and Alcoa seeking about $800,000.

The liquor tax has created confusion across the state. At least 15 other schools district said cities owe money and several have filed suit over the issue.

The suits follow a law passed during this year's legislative session that essentially gives school districts until June 1 to take court action seeking all back-payments.

City officials said the law on collecting the tax was poorly written and is open to interpretation. They say they don't blame the district for filing suit and hope the courts can clarify the issue.

(Copyright 2014 by The Associated Press. All Rights Reserved.)