Ocoee River tax found illegal; rafting customers due refund from Polk County

[doeriver]

The Tennessee Court of Appeals has recently released an Opinion that the collection of an Ocoee River rafting tax is not legal and contrary to federal law --- this decision has two important considerations for Tennessee consumers:

1) most (if not all) whitewater rafting customers on Tennessee rivers are not subject to any privilege tax imposed by local and state governments as pursuant to federal law, and;

2) Consumers who floated with commercial whitewater companies on the Ocoee River in 2008 (and other rivers in Tennessee with a similar county imposed rafting tax) have one year to file for a refund on this tax paid from the county government (I recall that this rafting tax in Polk County was at $2.00 0r $2.50 per customer; approximately 200,000 people floated the Ocoee River in 2004):

Tennessee Court of Appeals Opinions - 4 th Quarter 2008
http://www.tsc.state.tn.us/OPINIONS/TCA/ca4qtr2008.shtml

High Country Adventures, Inc. vs. Polk County - E2007-02678-COA-R3-CV
Polk County - The issues in this case are whether operators of whitewater rafting ventures responsible for collecting a county privilege tax imposed upon consumers participating in commercial rafting ventures in Polk County have standing to challenge the tax and if so, whether the tax is invalid because it is preempted by federal law. Upon careful review of the record and applicable law, we conclude that the operators have standing to contest the legality of the privilege tax and that the tax is preempted by federal law and is, therefore, invalid.

(view decision; .pdf file) http://www.tsc.state.tn.us/OPINIONS/TCA/PDF/084/HighCountryOPN.pdf

D. Disposition of Taxes Erroneously Collected (p.15)

The taxes at issue in this case were imposed upon, and collected from, a multitude of unknown consumers, and any refunds of monies due as a result of our decision belong to these consumers, not High Country and the other Operators. Accordingly, we direct that all such refund amounts be held by Polk County pending claim by any of those consumers to which they belong and
that, if unclaimed after one year, any such amounts shall be assumed abandoned in accordance with Tenn. Code Ann. § 66-29-110 and shall be paid to the state treasurer for disposition in accordance 4 with Tenn. Code Ann. §§ 66-29-115 and 66-29-121.