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City fails to pay taxes to school system
Liquor by the drink money hasn't been paid
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The city of McMinnville may owe thousands of dollars to local schools after a portion of the state’s liquor-by-the drink sales tax was not paid to the Warren County School System as required.According to an overlooked state statute, money was to be remitted to the school district when the city passed its liquor-by-the-drink referendum.Business owners in Tennessee cities who collect a liquor-by-the-drink tax are required to remit a percentage of their sales to the state, which sends half back to the cities. Cities are then supposed to give half that amount to the school district.McMinnville voters passed liquor by the drink in November 2002 and Applebee’s began serving liquor and wine in January 2003. The city currently receives approximately $11,000 a year from the state in taxes associated with liquor by the drink sales.Other cities across the state also owe their school districts money and the state is not blaming municipalities for the confusion.