SHELBYVILLE, Tenn. (WGNS Radio) – The Tennessee Court of Appeals has ruled in favor of the City of Shelbyville in a high-stakes financial dispute with Bedford County over the allocation of local option sales taxes. The appellate decision affirms a lower court’s ruling that allows the city to terminate a decades-old tax-sharing agreement, officially returning an estimated $2 million in annual revenue to Shelbyville starting July 1, 2027. During oral arguments, Michael Catona, representing Bedford County, stated before the appellate judges in the Tennessee Court of Appeals…
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The lawsuit stems from a 1974 handshake-style contract in which the City of Shelbyville agreed to relinquish a portion of its sales tax revenue to Bedford County. The funds were specifically designated to finance a county school construction and maintenance initiative known as “Building Program B.” The attorney representing Shelbyville made a rebuttal before the judges….