TBA Law Blog


Posted by: Katharine Heriges on Feb 6, 2018

In a unanimous opinion, the Tennessee Supreme Court ruled that a taxpayer must pay disputed municipal taxes under protest before suing for a refund. In Chuck’s Package Store et al. v. City of Morristown, the court concluded that because of a change in state law, as of Jan. 1, 1986, a taxpayer is not required to pay under protest disputed state taxes collected or administered by the commissioner of revenue before seeking a refund. However, the change in state law did not affect taxpayer lawsuits to recover disputed municipal taxes. After Jan. 1, 1986, a taxpayer is still required to pay under protest disputed municipal taxes before suing for a refund. The opinion, authored by Justice Sharon G. Lee, reversed a Court of Appeals decision and the ruling of the Hamblen County Chancery Court.