Kimball to pay liquor sales taxes to schools

photo David Jackson

Arkansas-Ole Miss Live Blog

KIMBALL, Tenn. -- After Kimball Mayor David Jackson read recent newspaper articles about several Tennessee cities owing county school systems millions of dollars from liquor-by-the-drink sales taxes, he wondered if his city owed money, too.

After some investigation, city officials found that Tennessee Code Annotated requires the state to collect the tax, and it keeps 50 percent of that money.

"[The state] sends 50 percent back to the city," Jackson said. "Then, we're supposed to take that 50 percent, cut it in half, and send that to the [county] trustee's office for the school system."

Since 2010, the state has returned $5,588 to Kimball, he said, so $2,794 is owed to the Marion County school system.