In Appeals Court brief, Knox attorney says tax ruling for Corbin is flawed

Although resolution is still likely a long way away, legal wrangling continues between Knox County and the City of Corbin over 
occupational tax dollars.

On Friday, Lexington attorney Douglas McSwain filed a 47-page legal brief claiming that the trial court was in error when it ruled in favor of the City of Corbin.

“The Court erred in its analysis and must be reversed and an order entered that the Appellees (White and Corbin taxpayers) are not entitled to a credit for city occupational license fees against county occupational license fees,” McSwain claimed in the brief, 
referring to an eight-page ruling signed nearly six months ago by Senior Judge Roderick Messer. In that document, Messer ruled that “upon collection by the City of Corbin of its occupational license fee, all Corbin taxpayers who also owe occupational fees to Knox County shall be allowed to credit the amount of the occupational license fee paid to Corbin against the 
occupational license fee owed to Knox County.” Immediately following Messer’s ruling, Knox County officials vowed to  fight the ruling.

On July 13, a Notice of Appeal was sent to the Kentucky Court of Appeals on behalf of the county and the battle moved from Knox Circuit Court to the Kentucky Court of Appeals.

Friday’s brief is the first action filed in the case, since the official record was certified in September, that outlines the 
county’s claims. McSwain claims that taxpayers in the Knox County portion of Corbin are not entitled to a credit from Knox County occupational tax fees against the license fees paid to Corbin.

McSwain claims that the Knox Circuit Court erred when it overlooked crucial facts in the case and “applied the law incorrectly.”
He also claimed that Corbin does not have standing to file a suit. 

“…There is no legal impediment to Corbin collecting the revenue from it occupational tax. Corbin can collect those taxes without 
suing Knox County,” the brief reads.

McSwain also claims that the court erred when it found that Corbin businessman Joe White, who was one of the original plaintiffs in Corbin’s suit against Knox County, and Corbin’s interests are the same as those of Barbourville when it successfully sued Knox County in 1999. He noted that Barbourville’s suit was filed only 24 days after the city passed its occupational license fee. On th other hand, he said Corbin’s action against Knox County was not filed until 2008, three 
years after Corbin passed its license fee.

Attempts to reach McSwain by press time Tuesday were unsuccessful.