Third attempt to rescind sales tax fails

Published 1:29 pm Friday, February 5, 2010

A third attempt to rescind an unwanted sales tax has failed, despite searing opposition from Blount County and Warrior merchants. 

On Monday, three members of the Warrior City Council voted to eliminate a sales tax that has enraged Blount County residents and business owners.

However, the council is deadlocked, as the remaining three members voted to keep the tax.

The council on Dec. 2 adopted an amendment that allows Warrior to collect a 1.5-percent sales tax from businesses in its police jurisdiction. The jurisdiction extends 1.5 miles beyond Warrior city limits in unincorporated areas.

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Warrior Mayor Rena Hudson told the crowd Monday that she and Councilman James Jett had met with the Hayden Town Council in order to extend the tax collection date.

“We agreed that we will put off collecting the tax until April 1,” Hudson said.

On Jan. 28, a Blount County judge, following an agreement between Warrior and Blount County, ordered that the tax will not be collected until April.

Businesses were originally scheduled to start collecting the tax on Feb. 1, with the revenue being turned over to Warrior in March.

Hudson’s comments drew fire from the crowd, especially from Warrior business owners, most of whom also oppose the tax. Warrior merchants will not be paying more tax because of the amendment, but many have said they are suffering financially from the boycott.

Read the full article in Wednesday’s edition of the North Jefferson News.