On Tuesday, the Alabama Supreme Court denied Jefferson County’s request for an additional stay of an Order requiring the County Commission to escrow funds collected from the occupational tax.  The County Commission had been allowed to temporarily spend money collected under the tax, which was declared illegal in January, while the Alabama Legislature was in session.  That Order expired with the close of the legislative session when no new occupational tax was approved for Jefferson County.  Three justices who pay the occupational tax recused themselves from hearing the matter.  The remaining justices voted 4 to 2 to require Jefferson County to go back before the trial court before seeking a stay in the Alabama Supreme Court. 

Sam Hill and Jim McFerrin, the lawyers who represent the taxpayers in this case, have filed a motion to hold the Jefferson County Commission in contempt of court for failing to escrow funds which have been and are being collected from this illegal tax. Commission president, Bettye Fine Collins, has stated in memorandum to County employees and in the press that the Commission does not intend to escrow the funds.  In January, when Judge Rains declared the tax to be illegal, the County Commission began escrowing its collections immediately, and continued to do so until Judge Rains allowed them access to the funds pending action by the Alabama Legislature.  The County now takes the position that though the Order allowing them to spend these collections clearly expired at midnight on May 18, 2009, they do not have to start escrowing the funds until sometime later in the summer.  

In a separate filing before the Alabama Supreme Court, counsel for the Jefferson County Commission sought and received a 37 day extension for filing their initial appeal brief.  The County’s brief is not due to be filed now until June 29, 2009 – 28 days after the Jefferson County Commission has said that drastic measures will have to be taken because the tax has been declared illegal.  Taken in context with the findings by Gregory T. Reagan, CPA, regarding the fiscal picture facing the County, it begs the question of how necessary these drastic cuts really are.