Hamilton County can keep PILOT funds, AG says

The state Attorney General said payment-in-lieu-of-taxes money collected by Hamilton County doesn't have to go straight to the local school district.

State Rep. JoAnne Favors, D-Chattanooga, had asked Attorney General Bob Cooper if the Hamilton County Commission could legally withhold the money from the Hamilton County Board of Education.

In his opinion, Cooper said, "In this instance, the disputed PILOT funds are not required to be paid directly to the Hamilton County School Board when they are received and may be retained by the Hamilton County Commission."

Commission Chairman Larry Henry said he thought the county's position was correct all along and noted that an attorney general's opinion is just an opinion and has not been tested in court.

The county commission and school board members have argued over who has control of the estimated $6 million generated from PILOT agreements.

Read more in tomorrow's Times Free Press.

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