Birmingham, Alabama -The Alabama Supreme Court yesterday affirmed a lower court ruling that Jefferson County's occupational tax was repealed in 1999. The ruling means that the cash-strapped Jefferson County will not have access to millions collected in occupational tax revenue that has been sitting in escrow.
A circuit judge ruled in 2000 that the repeal law was unconstitutional. But Rains used a 2005 Alabama Supreme Court decision to void the 2000 ruling and to declare that the repeal law is valid.
Loss of the two levies, which constituted 25 percent of the county's general fund revenue, led to the county's recent financial meltdown. Commissioners have placed 1,000 county workers on unpaid leave and instituted cuts that have drastically reduced county services.
Although the Legislature passed a new occupational tax law last week, the appeal on the validity of the old tax law has continued. County officials want the old law upheld in case the new version is struck down, and they want to regain control of occupational tax revenues collected since Rains' ruling Jan. 12.
Collins said sales tax revenues are down 15 percent from last year. The county still owes $3.9 billion in sewer debt and recently missed a $105 million general obligation debt payment. "It's like a bomb went off," Commission President Bettye Fine Collins said. "We're trying to assess the damage. We're not happy about it."
It’s a sad day for Jefferson County and the City of Birmingham just on Election Day both Jefferson County and Birmingham get bad news. I call it a shamed for Jefferson County. Now what’s next a appeal to the 11th Circuit Court of Appeals or just do without it? I don’t think they want to do with out. I think they should because our people are taxed enough already, what they need to do is balance that budget and trim the unnecessary and bring enough people back to operate all the satellite courthouses and departments and operate in a balanced budget until the future get bright.
