- Associated Press - Monday, November 9, 2015

TULLAHOMA, Tenn. (AP) - A Tennessee appellate court ruling could revive the Coffee County Board of Education’s lawsuit against the city of Tullahoma over liquor-by-the-drink taxes owed to county schools going back to the 1980s.

The Chattanooga Times Free-Press reports (https://bit.ly/1lfHqTB) the ruling was released this week.

Coffee County was among several Tennessee county school systems seeking the liquor-by-the-drink tax money owed by municipalities where liquor is sold. Court records show the county’s suit filed on May 30, 2014, sought $387,488 from Tullahoma and $134,340 from Manchester.

Chancellor Vanessa Jackson dismissed the suit in September 2014. But the appeals court disagreed with the dismissal, saying Coffee could engage in arbitration even though statutes creating the board did not expressly give it power to arbitrate.

Attorney Eric Burch says county schools will pursue the lawsuit.


Information from: Chattanooga Times Free Press, https://www.timesfreepress.com

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