Warrior, Blount County settle tax lawsuit

Published 4:00 pm Monday, August 2, 2010

After seven months of fierce battle, Blount County and the city of Warrior have settled their lawsuit revolving around taxes.

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Blount County District Attorney Tommy Rountree filed the lawsuit in January in an attempt to stop Warrior from collecting taxes from businesses in Blount County.

The Warrior City Council voted in December 2009 to collect the sales tax from businesses within the city’s police jurisdiction, which extends 1.5 miles beyond Warrior city limits.

Larry Waites, assistant Blount County district attorney, said Friday he did not know all the details of the settlement, but said the action would prevent Warrior from collecting taxes in Blount County.

“Basically that’s what we wanted all along,” he said.

Warrior Mayor Rena Hudson said the city agreed there was no need to pursue the lawsuit because there was only one business left in Blount County from which the city could collect taxes.

That is because all Blount County businesses except one in Warrior’s police jurisdiction — Warrior Tire — annexed into the city of Hayden effective July 1.

“We will go ahead with what’s in Jefferson County and collect that (tax), because it was a legally passed ordinance,” Hudson said

City officials said there are three businesses in unincorporated Jefferson County from which Warrior can still collect the tax: Wayne’s Package Store, Sloan Supply and Bradford Health Service.

In the November general election, there will be two amendments on the ballot in Blount County regarding taxation: One for voters in the Blount County and one for voters statewide.

The amendment says that “no city can extend beyond the county borders with their police power taxation,” said Rep. Elwyn Thomas, R-34. He and Sen. Scott Beason, R-17th, are jointly sponsoring the amendment.