BENTON, Tenn. — Polk County officials said they want to meet with the state comptroller’s office in hopes of solving a $1.4 million funding dilemma over taxes on Ocoee River rafting.

Members of the county budget committee canceled a planned meeting Tuesday night to discuss how the county will come up with money that might be needed to refund taxes later ruled illegal.

“This county is facing a lot of serious issues,” County Attorney James Logan said Wednesday. “We canceled the meeting to try and get the state comptroller folks to meet with the commissioners and address this issue.”

An appeals court ruled that the county privilege fee of $2.50 per commercial rafting ticket was illegal and ordered the county to hold any money collected so rafters could claim refunds.

Polk officials have said money brought in by the rafting fee has been spent. They considered a loan, but state law does not allow counties to borrow for that purpose.

“This office has been in communication all week with the state and we are still searching for options,” Mr. Stinnett said. He said ideas offered so far “do not really (serve) the best interest of the county,” but he didn’t elaborate.

Mr. Stinnett said the court decision did not outline details of how former customers could get refunds. The court ordered that any money not claimed after a year should be turned over to the state.

Mr. Stinnett said he also doesn’t know if rafting companies will be liable for paying some $2 million in fees they allegedly collected but never turned over to the county.

“Who is supposed to return that?” Mr. Stinnett said. “There needs to be more clarification from the courts.”

Ocoee Outfitters Association President Carlo Smith could not be reached Wednesday. In a past interview, he said some outfitters paid the fees from their revenues and didn’t collect the tax from customers.

The county’s current debt includes a loan guarantee to keep the Copper Basin Medical Center open, bonds for the new jail and loans for school construction.