Friday, August 29, 2014
Vote Brings Lawrenceburg Into Compliance With Mandated Distribution Of Liquor Tax
Members of the board that governs the City of Lawrenceburg approved a resolution Thursday that brings the city into compliance with recent state legislation mandating that a portion of the local liquor tax be given to local schools.
In 2011, after residents approved a referendum allowing the sale of liquor-by-the-drink inside the corporate city limits of Lawrenceburg, city leaders opted to levy a privilege tax for on-premises consumption, as allowed by state law. They adopted the state privilege tax schedule that assigns fees to various types and sizes of businesses licensed for on-premises consumption.
Tennessee Codes Annotated dictates that the Department of Revenue distribute half of all taxes collected locally to Tennessee’s general fund for education purposes. The remaining half is distributed to the localities where the funds were collected.
A new state mandate took effect July 1, dictating that municipalities that do not operate a school system separate from the county pay half of the taxes they receive to the county school fund.
Members of the city council approved an ordinance Thursday to, “Enter into an agreement with Lawrence County School System regarding the distribution of liquor-by-the-drink taxes.”
Regarding the legislation, Mayor Keith Durham expressed, “I personally oppose this. I don’t think we should send our kids through school through liquor and gambling in Tennessee.”
