City Wins Dispute Over Tax Split With Bradley County

A dispute between Cleveland and Bradley County over more than $845,000 in sales tax revenue may be settled, according to the Chattanooga TFP.
Lawyers are studying a Chancery Court ruling released Wednesday in which Chancellor Jerri Bryant ruled the city need not share with the county revenue generated by a city sales tax increase between July 1, 2009, and June 30, 2010.
That money is outside a sales-tax sharing agreement dating to 1967. City and county voters approved separate half-percent sales tax increases in 2009.
“The court holds the city did not have to share any property taxes with the county until such time as the county passed its own referendum,” Bryant’s ruling states.
“At that point in time, pursuant to statute, the city was allowed to collect its own sales tax through that current fiscal year which ended June 30, 2010. After that appointed time and absent any agreement between the parties, the statute sets the basis for which the sales tax is to be divided.”
She noted that the 1967 contract allowed the city and county to equally share sales tax revenue. It was amended in 1972 and 1980 to reflect new sales tax increases, but not to address the 2009 referendum.

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