Like a sore that has been festering for years, the relationship between the county commission and whitewater outfitters erupted at Monday night’s commission meeting. Words flew back and forth after county attorney Jimmy Logan told the commission he would be filing paperwork by Wednesday as a follow-up to a strategy meeting held with the commission in executive session after the state Supreme Court declined to hear the rafting tax case. The commission had earlier discussed the possibility of appealing to the U.S. Supreme Court since a federal law is involved.

The state Court of Appeals ruled that the county’s amusement tax violates the federal Maritime Act and that the county would have to reimburse rafting taxes that had been paid. The commission had been trying to figure out how they could come up with the funds needed to cover that reimbursement.

Gerald Marshall of High Country asked how much it would cost the county to file an appeal with the U.S. Supreme Court and Logan said that information had been shared with the commission in executive session. Commission Mark Bishop read from a newspaper article in which Marshall had said the outfitters were willing to pay taxes but did not want to be taxed to death, adding there are outfitters who have not paid property tax. Marshall said they were talking about something different and again asked Logan about the cost of a Supreme Court request.

Logan said it is too early to make a reasonable projection, noting a Petition for Writ of Certiorari is not that expensive. Marshall asked, “$50,000? $100,000? $150,000?” and Logan said that’s way too much for the initial petition, adding after that it could be expensive. He pointed out that the issue of jurisdiction was not raised at the state court level and that issue is often considered. Marshall asked the cost and Logan said it could be minimal in light of the impact of the decision of the state court.

Brooks asked how much the outfitters have spent trying to deprive the county of rafting tax money. Marshall said they are not depriving the county, that the law is the law. Wanda Cheek said every business pays taxes and the outfitters don’t have any to pay. Bishop added some don’t even pay property tax.

Marshall said the outfitters pay the equivalent of sales tax to TVA for water releases and to the state for management of the Ocoee, adding that’s why they have an exemption from sales tax on raft trips. He added they pay more than $500,000 yearly for water and park rangers. Brooks said that is simply an operating expense for the businesses. Karen Marshall pointed out that anybody can use the water that the outfitters pay for, adding the outfitters also pay to promote rafting and the county. Gerald Marshall said the outfitters have to pay for the water but they don’t own it. He said then-Senator Ben Longley called it a consumer tax. Bishop asked Marshall if he has paid his property tax and Marshall said he had. John Pippenger said he did not agree with Marshall’s explanation of how the sales tax exemption came about, that he thought Longley had gotten the sales tax exemption because of the amusement tax.

Daren Waters asked about the fees paid by outfitters. Lance Luke of Wildwater said they pay $1/guest to TVA and 50¢/guest to the Forest Service. He added, “None of us wants to be contentious, but there seems like a lot of it.” He said the outfitters have twice offered to settle the tax case, adding they are spending time, energy and revenue and, as citizens, also paying the taxes that cover the county’s attorney fees. “Let’s bury the hatchet,” he said, adding, “We could all be prospering and doing better for the citizens of the county.”

Cheek said citizens have hardships every day because of the difficulty in traveling down Highway 64 when there is rafting.

Logan said he has only been representing the county for a short time, adding there are lots of options available. He said he has offered to sit down and discuss the issues with the rafters and their attorneys but nobody has talked to him. Luke said they would like to do that, adding it is terrible waste of county resources to take the case to the U.S. Supreme Court. Logan said he cannot meet with the outfitters unless their attorney is present but “we stand ready to do what’s in the best interest of the county.” Luke replied, “Let’s make it happen.” Logan said he has the permission of the county commission to talk. Karen Marshall asked if there might be a neutral third party who could help since the two sides have strong feelings.

To Bishop, she said, “Your hostility is unbelievable.” Bishop said, “I’m an evil man.” Marshall said everyone makes money off the outfitters’ investment in water. Wanda Cheek said the water is free and Luke said, “Not to us.” Cheek said there has always been water in the river and Marshall pointed out that TVA uses it for power generation. Daren Waters said the outfitters are paying for scheduled releases, not water. Bishop said that’s a cost of doing business. Marshall said he would agree if the outfitters controlled the water but anybody can use it for free.

County Executive Mike Stinnett said there have been offers from the outfitters but they were not acceptable. He also noted that commissioners were told not to talk about the offers, which were discussed in executive session, but citizens apparently heard mistruths about the offers. “If you’re sincere, have your attorney contact our attorney and let’s get started,” Stinnett said. Luke said they want to do what’s best for everybody’s interests but said it takes an open mind on both sides, a willingness to compromise and do what’s best for the industry and the county.

Mark Bishop commented that Luke had looked at him while talking about the need for an open mind, adding he has been fighting this issue since 1990. He said he had pulled property tax records and it bothered him that some outfitters have not paid. Luke said he shares that frustration but pointed out there are other citizens who are not current on their taxes.

Pippenger pointed out the state attorney general recently supported the county’s idea for rewriting the amusement tax. Logan said that’s true as long as the calculation is made under what’s allowed by the Maritime Act. He went on the say it looks like the county and outfitters have the same desires. “There are things we could do,” he said, adding most decisions have not been made with the kind of insight the commission has now. Cheek said they would have liked to work with the outfitters in the past but it seemed like it had to be their way only.

Logan said he would be happy to meet with them any time, adding they have 48 hours or less.

Later in the meeting, Bishop apologized for getting ill with the outfitters but added he would be checking with Chancery Court to check on whether outfitters had paid their property tax.

There was no discussion on the commission’s proposal to revise the rafting tax, which was not presented in Nashville in time for a vote and which inadvertently included the Hiwassee as well. At the end of the meeting, Brooks asked Polk County News editor Ingrid Buehler about the “Dropped the Ball” editorial in last week’s newspaper, asking her to explain what the commission did wrong. She declined to answer and Brooks commented, “That’s what I thought.” He also commented that she likes to be judgmental on the commission every week and added she should be judged as well. He pointed out the newspaper has encouraged citizens to avoid littering because company’s coming and asked her, “Have you seen the back of your office?”