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. 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. The chances of passing another replacement tax during the 2011 legislative session were reduced due to incoming Republican majority's campaign stances on taxation. Judge Rain’s forty-seven page ruling held that Act 1967-406 (the “1967 Act”) authorizing the County tax was validly repealed by legislation passed by the Alabama Legislature in 1999. MONTGOMERY — Most House members stayed out of the Jefferson County occupational tax issue on Wednesday, but some from outside the state’s largest county who got involved almost succeeded in killing the tax vote. The county manager bill was modified in the Senate to eliminate the comptroller position. The bill, which originally included a reinstatement of the occupational tax, was passed in the House of Representatives after that stipulation was removed. 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. (Jefferson County Revenue Department Notice March 2011.). editorial (June 13, 2011). The information and data may be subject to errors and omissions. 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. Jefferson County Manager Tony Petelos said in an interview later that the ruling is a great step forward for a county that is recovering from financial turmoil that included bankruptcy and the loss of an occupational tax that provided $70 million a year. ", Wright, Barnett (August 12, 2009) "Commission president calls occupational tax fix a "bad bill". The court did not address any question regarding the 2009 replacement law. Rains struck down Jefferson County, Alabama’s ever controversial occupational tax. In response, the Jefferson County Commission issued the following statement on March 22, 2011: 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… Jeffco's Department of Revenue hopes to have the notices in the mail by Thursday to the 15,000 employers that pay the tax. During debate, Sells said he represents 3,000 constituents in Montgomery County. Jefferson County Parcel Map. Visit our News Library to read more news stories. The county challenged the new tax in court (and eventually prevailed in a January 12, 2000 ruling). 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. 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. Jefferson County, Alabama occupational tax unconstitutional. Taxes levied on operations of dog and horse race tracks in Alabama. ", Wright, Barnett (March 17, 2011) "Alabama Supreme Court rules Jefferson County's 2009 occupational tax illegal. ", "Jefferson County should ask the governor for a special session after Sen. Scott Beason killed the limited home rule bill." In May 2005 an unrelated case regarding the means by which a law can be struck down was decided by the Alabama Supreme Court, threatening the status of the Circuit Court ruling against the first legislative rewrite. The Jefferson County Occupational Tax is a 0.45% tax on wages for all workers in Jefferson County, signed into law by Governor Bob Riley on August 14, 2009. Meanwhile the state legislature argued that the overall rate should be adjusted to keep revenues flat. cmSetClientID("90378051", false, "www9.wolterskluwerlb.com", "hr.cch.com"); Labor Arbitrators' Awards and Biographies, American Payroll Association (APA) Basic Guide to Payroll, 2013 Edition. The final version passed over the objections of Arthur Payne, John Rogers and Mary Moore. It's more important than ever to be in compliance with payroll laws and regulations! In the Senate, the bill was approved by the Finance Committee. The Jefferson County Commission refused to collect the new tax while its legal challenge to the repeal proceeded. Both have been subject to court challenges. 67-406) giving the county the power to impose taxes on wages and business licenses. pageTracker._trackPageview(); In effect the court ruled that the judicial branch cannot instruct the legislature on its own rules. (Jefferson County v. Weissman, Alabama Supreme Court, No. If the referendum is not approved, the occupational tax will phase out on … If voted down, the tax would expire completely in 2017. The state of Alabama sales tax was 4% at the time and Jefferson County's was 2% in total. Hale broached the possibility of asking Governor Bob Riley to activate National Guard troops to maintain the peace. The Jefferson County Revenue Department has issue a notice advising employers to immediately stop withholding the tax from employees paychecks. On April 15, 2009, the Jefferson County delegation to the Alabama House of Representatives held a public hearing on House Bill 811. That same month the repeal was deemed unconstitutional in Circuit Court. UNEMPLOYMENT Any amounts that have been withheld from… 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. For more information on this and other topics, consult the Visit our News Library. The Jefferson County Legislative Delegation, spurred on by Governor Riley, eventually reached consensus on a replacement tax which is subject to a popular referendum in 2012 and to diminish to non-existence by 2017 if not renewed. ", Chandler, Kim (August 16, 2009) "Jefferson County occupational tax lawsuits expected. The new law replaced a controversial 0.5% tax that was collected from non-licensed wage earners from 1987 to 2009. var gaJsHost = (("https:" == document.location.protocol) ? American Payroll Association (APA) Basic Guide to Payroll, 2013 Edition Parcel Map Web Map by JeffersonCountyALgis. On December 1, 2010, the Circuit Court of Jefferson County ordered that collections for Jefferson County Occupational Tax be stopped immediately. Sells argued occupational taxes are “taxation without representation,” while opponents, including the mayors of 10 of Alabama’s largest cities, said the law denies cities an avenue to raise revenue. 2d 833, 837 (1972). ", Wright, Barnett (August 27, 2009) "Lawyers for Jefferson County, taxpayers debate next move. The new laws were signed by the Governor on August 14. The House also approved a bill requiring the Commission to hire a County Manager and a Comptroller to help manage its finances. 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. After the bill failed, the County Commission began laying off hundreds of county workers. A 2009 court ruling against the tax deepened a financial crisis for the County government, provoking massive layoffs and reductions in services. Depending on the type of business, where you're doing business and other specific regulations that may apply, there may be multiple government agencies that you must contact in order to get a Jefferson County, Alabama Occupational License. Birmingham 2021 Payroll Tax - 2021 Alabama State Payroll Taxes. The employee's supervisor must certify the completed document. Revenue from the tax … JEFFERSON COUNTY, ALABAMA. Down Jefferson County Commission at hand to enact a new occupational tax help manage finances. Commission refused to collect the new law replaced a controversial 0.5 % tax that was from! 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