Blount County and the city of Warrior have settled a lawsuit that stemmed from a December 2009 action.

During a meeting that month, the Warrior City Council adopted a resolution to impose a use tax on businesses in the Warrior Police jurisdiction, including several businesses in neighboring Blount County. Warrior is in Jefferson County.

The move incited a firestorm from Blount County business owners, and even from Warrior merchants after Blount County residents boycotted Warrior stores for several months. At least one business, Jones Cleaners, closed because of the boycott, according to the then-owners.

A month later, in January 2010, the state of Alabama filed a lawsuit asking the court to keep Warrior from taxing businesses in Blount County.

“I am glad that my office was able to get this matter resolved under terms favorable to the people of Blount County,” said Blount County District Attorney Pamela L. Casey.

Warrior city officials said dismissal of the lawsuit was a formality, since the city had decided not to attempt to collect taxes from Blount County businesses following the vehement opposition.

Warrior’s 2009 resolution prompted Blount County to push a measure through the state legislature that would allow noncontiguous property to be annexed into Hayden in Blount County. All Blount County businesses in the Warrior Police jurisdiction annexed into Hayden except for one, Warrior Tire.

Warrior officials argued that the tax was justified because Warrior Police

officers patrolled the jurisdiction area — which was a mile and a half from Warrior city limits — even though the city received no benefits from Blount County. Most Blount County merchants responded that they rarely saw Warrior patrols near their businesses.

Warrior’s resolution also prompted the proposed Constitutional Amendment 4, which would have blocked any city or town located entirely inside one county from imposing a tax or regulation that would apply to police jurisdictions that extend into another county. The amendment failed to pass statewide in the 2010 election.

Bill Logan, owner of Logan’s General Store in Blount County, spearheaded much of the activism against Warrior. His store was the site of at least one large rally where Blount County residents and merchants voiced strong opposition to Warrior’s attempt to collect taxes from their county.

Logan said this week that he is still content with his decision to annex the store into Hayden.

He said Hayden has recently begun paying off-duty Blount County deputies to patrol Hayden’s outlying areas.

“We’re seeing them circulate now,” Logan said, adding that Hayden has also improved its walking track and other amenities.

Logan said he pays a 1-percent sales tax to Hayden; he said he would have been required to pay a 3-percent tax to Warrior if that city’s resolution had been enforced.

Warrior’s city attorney was unavailable for comment by press deadline.