The Town of Boone's lawsuit against Watauga County has been dismissed.
The Watauga Democrat reports on March 17, Superior Court Judge Gary Gavenus granted a motion from Watauga County to dismiss a lawsuit filed by the town of Boone concerning local sales tax distribution.
The lawsuit was originally filed in February 2020, and amended in May. Watauga County initially moved to dismiss the lawsuit on June 29, and then filed a second motion to dismiss January 7, 2021.
The town claimed in its complaint that Boone had lost millions in sales tax revenue since the county switched to the “ad valorem” sales tax distribution method (based upon property tax values) instead of the “per capita” method (based upon the total populations) in 2013, and that the county adopted an “unlawful distribution scheme” - a “hybrid approach” of both methods that is not authorized by law.
The County claimed the town did not have a “legal right” at stake as they didn’t have a “legal right” to choose the method of sales-tax distribution, as that decision belongs solely to Watauga County.
Gavenus granted the County's motion to dismiss on the grounds stated in the motion including “lack of subject matter jurisdiction based upon the lack of standing and the political question doctrine.”
The official court order for the dismissal had not been filed as of early March 23.