ONLINE EXCLUSIVE: Knox Co. officials appeal payroll tax ruling

Knox County officials have made good on their promise to take an ongoing tax battle between the City of Corbin and Knox County to a higher level.

It may be several more months before a final Court of Appeals ruling is issued, said Lexington attorney Doug McSwain, who represents Knox County.

On July 2 McSwain filed a Notice of Appeal in Knox Circuit Court, meaning that the issue is now in the hands of the Kentucky Court of Appeals.

As of Monday afternoon, however, officials with the Court of Appeals had not received the notice.

Once the notice is received by the court, officials say it will be assigned a new case number and the appeal process will continue.

"We are going to take the matter to the Court of Appeals and litigate it there," McSwain said.
Once the case file is received, the Court of Appeals clerk will certify the record.

"Then both sides will do briefs, and the court may or may not set it for verbal argument," he said, adding that the court is not required to hold such arguments. "If we ask for it, we’re probably going to get it."

McSwain said it is hard to estimate when the Court of Appeals will finally rule on the issue, noting that it could take several months or up to a year before the matter is resolved.

The appeal was the result of a June 3 judgment signed by Special Judge Roderick Messer. In the eight-page ruling, Messer stated  "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."

The ruling came roughly four months after a hearing held in Laurel County. During that hearing, attorneys representing both Corbin and Knox County presented evidence supporting their arguments.

The two sides argued their cases before Messer during late February hearing. Following the hour-long hearing, Messer told attorneys that he needed more time to consider their arguments before making a ruling.
In an interview following the June 3 ruling, Knox County Judge-

Executive J.M. Hall said that while the appeal is in process, the county would continue to collect tax as usual. "Nothing will change. We will collect our tax as always."