Settlement Reached over Rainsville Privilege License Dispute

December 29, 2011

Rainsville City Council and DeKalb-Cherokee Gas District have reached an agreement regarding the payment of the gas company’s privilege license taxes. What began as a disagreement in 2010 morphed into a financial conflict that involved millions of dollars in privilege license fees.

Council members had filed a suit against DC Gas claiming that the gas company owes millions in back Rainsville, AL privilege license fees. Dekalb-Cherokee Gas District claimed that they are a ‘gas district’ and they therefore don’t have to pay the city any business license fees or taxes.

After much discussion, council members and representatives of the gas company agreed that DC Gas would begin paying privilege license fees in 2012 so long as the city officially renounces the gas company’s obligation to pay past Rainsville, AL business license fees.

Times Journal quotes some aspects of the agreement between the gas company and the city. “DC Gas will pay Rainsville business license fees in an amount equal to 3 percent of the district's gross receipts actually collected for the sale of natural gas to customers within the corporate boundaries of the city and 1 ½ percent of the gross receipts actually collected for the sale of natural gas to customers without the corporate boundaries, but within the police jurisdiction of the city."

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