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Tullahoma Owes No Money after Coffee Co. Board of Education Sues over Liquor-by-the-Drink Tax Funds

Back in 2014 the Coffee County Board of Education sued the city of Tullahoma for $387,488. This was money the city had gotten from liquor-by-the-drink taxes.
The county argued the city’s portion of liquor-by-the-drink tax money should have been distributed in part to the county school system and had been denied those funds for decades.
The Tennessee Supreme Court has ruled in favor of Tullahoma saying the city does not owe the county schools any money.
A similar suit was filed by Manchester against Tullahoma, but a ruling has not been made in that case even though the decision is expected to be the same.