Cities across Tennessee need to start paying school districts millions of dollars in unpaid mixed-drink taxes, the state attorney general says.
Local school officials say the opinion released this week by Attorney General Robert Cooper means Chattanooga officials must pay the $11 million-plus it owes to Hamilton County Schools and can’t negotiate a lesser settlement or use land to offset the debt.
“It’s wonderful news. It’s the best news since Santa Claus,” said school board member David Testerman. “Our school system is in desperate need of funds.”
But Mayor Andy Berke’s spokeswoman, Lacie Stone, said the city is still reviewing the opinion to decide what it means for Chattanooga.
While it may help answer a nearly $12 million question here, the attorney general’s opinion has implications for school districts and municipalities across the state.