The entrance to the offices of the Hamilton County Department of Education headquarters.After agreeing to pony up almost $12 million in past due taxes, Chattanooga has filed a motion claiming the Hamilton County school system doesn’t have the right to file a lawsuit to recover the liquor-by-the-drink taxes.
The city’s motion, filed Monday in Hamilton County Chancery Court, claims the taxes are the state’s property and the state should have to join with the county to recover the money.
“The school board has ignored the state’s prior interest in the outcome of this matter and its exclusive right to bring it,” the lawsuit states. “The school board doesn’t have a standing as a result.”
Board of Education attorney Scott Bennett said he believes the claim is a tactic the city is using to delay its response to the allegations.
“What they’re essentially saying is we would have to get the [state] Department of Revenue involved to make the city do what they should’ve done in the first place,” Bennett said. “I don’t think that’s right.”