Court: City schools don’t have to share liquor tax proceeds
NASHVILLE, Tenn. (AP) – The Tennessee Supreme Court has ruled that city school districts don’t have to share money they receive from liquor taxes with county governments.
News outlets report the opinion this week settles five lawsuits filed by Blount, Bradley, Sullivan Washington and Coffee counties.
State law calls for the Department of Revenue to keep half the proceeds from liquor-by-the-drink taxes for general education funds and return the other half to the originating city or county.
The counties argued that the state law required cities to share the revenue with counties.
The Supreme Court disagreed. Justice Holly Kirby wrote that since cities make the money, they are entitled to the proceeds.
The ruling applies to all 95 counties and 43 cities that operate independent school districts.
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(WDEF) NOTE: This case only applies to counties with separate city and county school systems. So Bradley County went to court to try to get some of the Liquor tax money for their county school system. The ruling means that the Cleveland School system will be able to keep their money.