jefferson county alabama occupational tax
This page was last modified on 5 February 2013, at 13:38. The loss of the occupational tax money has forced Jefferson County to put 1/3 of its workforce on administrative leave without pay, and the closure of four satellite courthouses. JEFFERSON COUNTY, ALABAMA. The county challenged the new tax in court (and eventually prevailed in a January 12, 2000 ruling). 67-406) giving the county the power to impose taxes on wages and business licenses. In 1999 the legislature rejected the County's proposal and passed a law sponsored by Arthur Payne of Trussville which earmarked $29 million from the tax for 144 special projects chosen by legislators (Act of Alabama No. ", Wright, Barnett (March 17, 2011) "Alabama Supreme Court rules Jefferson County's 2009 occupational tax illegal. Jefferson County, Alabama occupational tax unconstitutional. John T. Smallwood is a lifelong resident of Jefferson County. The Jefferson County Revenue Department has issue a notice advising employers to immediately stop withholding the tax from employees paychecks. JEFFERSON COUNTY, AL (WBRC) – The Jefferson County Commission will send notice to employers in the county to stop collecting the occupational tax. The House also approved a bill requiring the Commission to hire a County Manager and a Comptroller to help manage its finances. On March 16, 2011 the Alabama Supreme Court ruled that the notice published by bill sponsor John Rogers in advance of the 2009 law was not specific enough to meet the requirements of the state constitution. 1120) states, in part: "It shall be unlawful for any person to engage in or follow any vocation within the county without paying license fees to the County for the privilege of engaging in or following such vocation, which license fees shall be me… The Alabama Legislature adopted Act No. Indeed, the Alabama Supreme Court has found as a matter of state law that a municipal tax very similar in substance to Jefferson County's tax was an occupational license tax, rather than an income tax. document.write(unescape("%3Cscript src='" + gaJsHost + "google-analytics.com/ga.js' type='text/javascript'%3E%3C/script%3E")); Judge Rain’s forty-seven page ruling held that Act 1967-406 (the “1967 Act”) authorizing the County tax was validly repealed by legislation passed by the Alabama Legislature in 1999. * Jefferson County to cut spending, change tax code * State court declared county occupational tax illegal * County faces $3.2 billion bond debt (Adds comment, detail, byline) cmSetClientID("90378051", false, "www9.wolterskluwerlb.com", "hr.cch.com"); Labor Arbitrators' Awards and Biographies, American Payroll Association (APA) Basic Guide to Payroll, 2013 Edition. This is a system of betting on races where the winners divide the bet after taxes, fees, and other expenses. The county manager bill was modified in the Senate to eliminate the comptroller position. On December 1, 2010, the Circuit Court of Jefferson County ordered that collections for Jefferson County Occupational Tax be stopped immediately. And this single-volume guide is filled with tools to help you apply the law and make proper calculations â with ease! A county act that imposed an Alabama occupational tax was declared unconstitutional because the published notice of the act failed to state the substance of the act. The text of the tax law (Jefferson County Ordinance No. 99-406). During July the group, following Governor Bob Riley's lead, renewed efforts to reach a consensus. The bill, which originally included a reinstatement of the occupational tax, was passed in the House of Representatives after that stipulation was removed. Uncertainty about the County's ability to collect the tax, and the threat of having to refund previously-collected funds have been at the forefront of the fiscal policies of County Commission, especially following the 2006 general election when a Republican majority was installed and Bettye Fine Collins assumed the presidency. The notice did not specify that the act was to be retroactively applied or that it allowed the enabling, authority to impose a new business license tax on both previously taxed taxpayers and a new class of "licensed professionals." The delegation heard from Jefferson County employees, commissioners, and lawyers Sam Hill and Jim McFerrin, the attorneys representing the class of tax payers who successfully challenged the prior occupational tax. During the legislature's 2011 session, bills granting the County "limited home rule", which would allow the County Commission to raise as much as $50 million in revenues through sales, excise, and rental taxes. (Jefferson County v. Weissman, Alabama Supreme Court, No. The first county-wide occupational tax of 0.5% was created on September 29, 1987 by the Jefferson County Commission to fund construction of the Jefferson County Jail in Birmingham and took effect on January 1, 1988. pageTracker._trackPageview(); If voted down, the tax would expire completely in 2017. The levy was enabled by a 1967 law passed by the Alabama State Legislature (Acts of Alabama No. Jefferson County Tax Collector Birmingham, Alabama. The City of Birmingham requires prior year occupational tax refund requests be submitted using the Affidavit Regarding Petition for Refund of Birmingham Occupational Tax form. In the case of Jefferson County v. Weissman, et al., the Alabama Supreme Court has ruled that Jefferson County's 2009 occupational tax law is unconstitutional. A provision in the 1967 enabling legislation, stipulated that licensed professionals (including physicians, lawyers, architects, private detectives and fortune tellers who paid a licensing fee to the state) were exempt from any tax levied under that law. : "http://www. The employee's supervisor must certify the completed document. The 1967 law enabling the county to levy the tax was repealed in 2000, leaving the status of revenues collected after that date in doubt as the courts reviewed the constitutionality of the original statute and the repeal. The county prepared a version removing the exemptions to tax all workers at the same rate. TLWjr/SHC/dt The Alabama Supreme Court ruled on March 16, 2011 that the Jefferson County Alabama Occupational Tax is unconstitutional because of procedural flaws in the passing of the law. Please refer to the table below for a list of 2021 Payroll Taxes (employee portion and employer portion) that are applicable to the city of Birmingham in the state of Alabama. "https://ssl." It was another way to get [the commision's] attention. The Jefferson County Education tax was discontinued effective 7/31/17 (replaced by Jefferson Co Special Revenue tax – 7337). ", Wright, Barnett (August 26, 2009) "Alabama Supreme Court deals blow to Jefferson County, says job tax was repealed in 1999 law. For more information on this and other topics, consult the Visit our News Library. Jefferson County Sheriff Mike Hale and tax assessor Dan Weinrib filed suits claiming that the county is required by law to fund certain services which would be impossible after the cuts. A special session called in August produced a new bill levying a 0.45% tax on all workers, set to taper down to nothing over five years unless renewed by county-wide referendum in June 2012. The court did not address any question regarding the 2009 replacement law. How do you stay in compliance and avoid penalties? Revenue from the tax … Any amounts that have been withheld from… A 2009 court ruling against the tax deepened a financial crisis for the County government, provoking massive layoffs and reductions in services. Jefferson County has depended on the revenue stream from its occupational tax since the 1990s, and it raised over $70 million the last full budget year it was in effect. BRADENTON, Fla. — The Alabama Supreme Court Wednesday struck down an occupational tax that provided one-third of Jefferson County’s general fund … The result of the ruling is that revenues collected over the 10 years between passage of the repeal and passage of the replacement law in early August 2009 may have to be refunded to taxpayers. Vote to pass a bill that allows the governing body of Jefferson County to levy an occupational, license or privilege tax on business transactions previously exempt from these taxes. $17.5 million of the revenues in question have been held in escrow by order of Circuit Court judge David Rains, whose ruling the Supreme Court upheld. Pari-Mutuel Pool Tax & State Horse Wagering Fee. The Jefferson County occupational tax is based solely on work performed in the county, regardless of where an employee resides. The tax bill was approved by the Senate. Jeffco's Department of Revenue hopes to have the notices in the mail by Thursday to the 15,000 employers that pay the tax. The trial court found that the county was precluded from collecting the tax but denied the taxpayers' request for a retroactive refund of the collected taxes due to the prospective application of the court's order. The new law replaced a controversial 0.5% tax that was collected from non-licensed wage earners from 1987 to 2009. } catch(err) {} UNEMPLOYMENT As readers may recall from one of… (Jefferson County Revenue Department Notice March 2011.). 2d 833, 837 (1972). 1120) states, in part: "It shall be unlawful for any person to engage in or follow any vocation within the county without paying license fees to the County for the privilege of engaging in or following such vocation, which license fees shall be measured by one-half percent of the gross receipts of each such person.". After the bill failed, the County Commission began laying off hundreds of county workers. 1100293, March 16, 2011.) The first county-wide occupational tax of 0.5% was created on September 29, 1987 by the Jefferson County Commission to fund construction of the Jefferson County Jail in Birmingham and took effect on January 1, 1988. 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