Judge delays tax collection
Published 12:27 pm Monday, February 1, 2010
Blount County has received a temporary reprieve from an unwanted tax.
On Thursday, Blount County Circuit Judge Stephen King ordered a delay for the collection of a police jurisdiction tax that the City of Warrior has voted to collect from some businesses.
“Our motion was to ask the court to order them to not begin collecting the tax,” said Blount County Chief Prosecutor Larry Waites. “Warrior agreed, without the necessity of a hearing, to forestall the collection of that tax until April 1.”
Waites said that without the order, businesses would have started collecting the tax on Feb. 1, with the revenue being turned over to Warrior in March.
Unless overturned, the police jurisdiction tax will increase sales taxes at affected businesses by 1.5 percent, with the revenue going to Warrior.
In return, according to Warrior Mayor Rena Hudson, the area will get increased police patrols.
The businesses include those that fall within Warrior’s police jurisdiction, which extends a mile and a half outside Warrior’s city limits in unincorporated areas.
Blount County Probate Judge and County Commission Chairman David Standridge said the delay in collections would likely not apply to businesses in Jefferson County that fall within the police jurisdiction.
Judge King has set a hearing for March 16 in Blount County Circuit Court, where Blount County is seeking a to have the sales tax permanently overturned.
Waites said he hopes the Warrior City Council will vote to rescind the tax before the hearing.
Meanwhile, Blount County is celebrating its temporary victory.
“We feel very happy with the outcome today,” said Standridge on Thursday. “It at least gives temporary relief to those businesses in west Blount County.”
After the Warrior City Council voted on Dec. 7 to collect the sales tax, the Blount County community reacted quickly in strong opposition to the tax.
Residents have called for a boycott of Warrior businesses. In addition, the issue has pushed 300 to 400 merchants and homeowners to fill out paperwork to have their properties annexed into the City of Hayden, according to Standridge.
“I hate it’s come to this,” said Warrior City Councilman Brad Fuller. “I hope there’s something we can do to get it worked out.”
Fuller said the issue has harmed long-standing friendships and business relationships.
A Warrior businessman himself, as owner of Brad’s Pools & Supply Inc., Fuller said he would not know until spring if the boycott will harm his business.
However, he said other business owners have said the boycott has hurt their bottom line tremendously.
Although the Warrior City Council voted unanimously to adopt the tax, Fuller now wishes for it to be rescinded.
Councilmen Johnny Ragland and Theodore Hines have also voted to rescind the tax, but the council appears deadlocked.
“Right now it still looks like it’s split three to three,” Fuller said.
He added that unless one of the council members changes his or her mind, the tax will remain in effect pending the outcome of the March 16 hearing.