TN Comptroller will review Knox mixed drink tax issue

(WBIR-Knox County) The Tennessee Comptroller's office will review the code on the mixed drink tax, according to Chris Caldwell, Knox Co. Finance director.

Knox County and Farragut have not paid the school system money owed from the liquor-by-the-drink tax. The county more than likely owes as much as $350,000. Farragut could be on the hook for at least $1.1 million dating back to 1999. The town has an annual budget of $6 million a year, so it could be difficult for Farragut to pay what's owed to the school system at one time.

MORE: Knox schools owed over $1 million in mixed drink taxes

State law says that 50 percent of the mixed drink tax has to go to education. Neither Farragut, which passed an ordinance in 1988 to allow establishment to serve mixed drinks, nor Knox County, which approved its ordinance in 2009, has ever paid the tax.

The City of Knoxville is up-to-date on its payments, Caldwell said.

Knox County and Farragut now must wait until the comptroller makes its ruling.

Caldwell said everyone will work together to come up with a resolution.


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