As class counsel for the people who paid the old Jefferson County occupational tax, it is our obligation to keep you advised of developments affecting this case.  There has been significant news coverage of Judge Rains’ Order, holding that the repeal of the Jefferson County occupational tax in 1999 was valid and that the tax has been collected illegally since.  Judge Rains has stayed enforcing his order to allow the Alabama Legislature the opportunity to create a solution for the County to move forward.  There are competing bills pending in both the Alabama House of Representatives and Senate to address the occupational tax.  The Jefferson County Commission has raised the specter of irreparable financial harm and various political pundits and editorial writers have had their say – now it is your turn.  As tax payers, your voices should be heard by the Jefferson County legislative delegation regarding these pending bills.

House Bill 811 re-enacts the occupational tax on a going-forward basis with a 10% decrease in the tax rate.  The bill removes all exclusions for people who did not pay the old occupational tax, and earmarks money for the Birmingham-Jefferson Civic Center Authority, the Birmingham Jefferson County Transit Authority, the Cultural Alliance of Birmingham, the Alabama Sports Festival, and UAB.   All remaining collections would go into the Jefferson County general fund.  However, the Birmingham News reported last week that Representative John Rogers, the primary sponsor of this Bill, stated that he will remove the earmarks in order to pass this legislation.  This Bill does not try to undo the Order entered by Judge Rains and retroactively find that the old occupational tax was valid after the repeal.  We believe that the taxpayers will be entitled to the refunds ordered by Judge Rains under this Bill.

Senate Bill 488, sponsored primarily by Senator Linda Coleman, seeks to retroactively apply the old occupational tax as if Judge Rains’ Order had never been entered.  This bill leaves in place the exceptions for certain categories of professionals who do not pay the occupational tax.  Those exceptions include the lawyers writing this letter.  This Bill also would allow the Jefferson County Commission to collect the occupational tax at “the rate of license or privilege tax levied by the largest municipality of the county on the same or similar type of business activity.” (Section 6 of Senate Bill 488)  Currently, the City of Birmingham, the largest municipality in Jefferson County, collects an occupational tax at the rate of 1.0%.  Thus, under this Bill, the Jefferson County Commission could collect the new tax at double the old tax rate.  Also, under this Bill, the taxpayers of Jefferson County would not receive the refunds ordered by Judge Rains.

The levy and collection of a new occupational tax is an important matter that concerns all people working in Jefferson County. In our estimation, attempting to retroactively validate the collection of the old tax by the Jefferson County Commission violates the Alabama Constitution, unfairly attempts to deny the taxpayers their refunds, and will prolong litigation over the occupational tax.  House Bill 811 does not have this problem.  Amending Senate Bill 488 to remove the retroactive application will cure this problem and create a legally sound Bill. We have listed below the contact information for each member of the Jefferson County legislative delegation.  Please contact your representatives and let your voice be heard on this very important matter.

 

Sincerely yours,

Samuel M. Hill, Esq.                                     

James H. McFerrin, Esq.

Class Counsel for the Plaintiffs in the matter of Jessica Edwards, et al., v. Jefferson County, et al.

Circuit Court for Jefferson County, Alabama – Civil Action Number 2007-900873

 

Jefferson County State Senate Delegation:

Scott Beason – (334) 242-7794

Charles Bishop – (334) 242-7894

Linda Coleman – (334) 242-7864

Henry “Hank” Erwin – (334) 242-7873

Steve French – (334) 242-7851

Edward B. “E.B.” McClain – (334) 242-7867

Rodger Smitherman – (334) 242-7870

J. T. “Jabo” Waggoner – (334) 242-7892

 

Jefferson County State House of Representatives Delegation:

Greg Canfield – (334) 242-7763

Merika Coleman – (334) 242-7755

Paul DeMarco – (334) 242-7740

Owen Drake – (334) 242-7727

Mary Sue McClurkin – (334) 242-7682

Priscilla Dunn – (334) 242-7702

Earl Hilliard, Jr. – (334) 242-7684

Mary Moore – (334) 242-7608

Pat Moore – (334) 242-7775

Demetrius Newton – (334) 242-7663

Arthur Payne – (334) 242-7753

Oliver Robinson – (334) 242-7769

John W. Rogers, Jr. – (334) 242-7761

Roderick Scott – (334) 242-7752

Elwyn Thomas – (334) 242-7762

Patricia Todd – (334) 242-7718

Benjamin “Allen” Treadway – (334) 242-7685

Jack Williams – (334) 242-7600