In an unanimous opinion today, the Alabama Supreme Court affirmed the repeal of the Jefferson County occupational tax.
Archive for August, 2009|Monthly archive page
Recent Recalls
In Legal News on August 24, 2009 at 8:54 amDurabrand DVD Player- On August 20, 2009, The Consumer Product Safety Commission has issued a notice of voluntary recall of Durabrand DVD Players. The DVD players can overheat, posing a fire and burn hazard to consumers. The recalled units are silver colored and have a U-shaped opening at the top to insert the DVD. The units were sold exclusively at Wal-Mart from January 2006 through July 2009, and retailed for approximately $29. Consumers should immediately stop using the product and return it to the nearest Wal-Mart for a full refund.
Pensi Ceiling Fans- On August 20, 2009, The Consumer Product Safety Commission has issued a notice of voluntary recall of Pensi Ceiling Fans made by The Modern Fan Co. The internal coupler that connects the down rod assembly to the motor can break and cause the fan to fall from the ceiling, posing an injury hazard to consumers. These units have been sold at Internet retailers, lighting showrooms, fan specialty stores and electrical distributors nationwide from August 2008 through July 2009 for between $400 and $530. Consumers should immediately turn off the power to the fan to stop use and contact The Modern Fan Co. for assistance with model identification and a replacement coupler. Consumers are also advised to not allow anyone underneath the fan. In the event that a fan falls, consumers should immediately turn off the circuit breaker due to the possibility of exposed electrical wires.
Weight Watchers Plush Hungry Figures and Magnets- On August 20, 2009, The Consumer Product Safety Commission and Health Canada have issued a notice of voluntary recall of Hungry Figures and Hungry Magnets manufactured for Weight Watchers by Shanghai Oriland Toys Co. Ltd, of China. Sewing needles have been found in the stuffing of the Hungry Figures, posing a puncture hazard to consumers. The figures have been sold exclusively by Weight Watchers between April 2009 and July 2009 for between $4 and $7. Consumers should immediately stop using the recalled Hungry Figures and Hungry Magnets and return them to Weight Watchers to receive a full refund or a credit towards the purchase of another product.
Cloth Books by Sterling Publishing Co- On August 20, 2009, The Consumer Product Safety Commission has issued a notice of voluntary recall of Eebee’s “Have a Ball” Adventures Cloth Books, Sterling Publishing Co. This recall involves the Eebee’s “Have a Ball” Adventure cloth book. This interactive activity book has a small cloth ball attached to a string which children use to complete activities in the book. The books are intended for children ages 9 to 36 months. ISBN 13:978-1-4027-5771-6 is located on a white tag attached to the book. Other Eebee’s Adventures cloth books are not included in this recall. A string attaching a ball to the book can become entangled in the basketball hoop element, posing a strangulation hazard to young children. Consumers should immediately take the book away from children, and return the product to the place of purchase for a refund.
Simplicity “Close-Sleeper/Bedside Sleeper” Bassinets- On August 20, 2009, upon learning of two additional infant deaths, The Consumer Product Safety Commission has issued a second notice of voluntary recall of the “Close-Sleeper/Bedside Sleeper” Bassinets manufactured by Simplicity Inc. This recall includes units manufactured prior to May 18; the following models are being recalled:
3000 3010 3011 3012 3013 3014 3015 3016 3017 3020 3025 3026 3027 3030 3040 3045 3046 3047 3050 3060 3070 3111 3112 343-8363 343-8399 5730 5750 8383 9250 TD2500
Why Aren’t the County Workers Back?
In Legal News on August 20, 2009 at 11:20 amOn June 23, 2009, the Alabama Supreme Court entered an Order telling the Jefferson County Commission what steps it needed to take to get access to the occupational tax money being held in escrow. With the passage of the new occupational tax, the question remains – why hasn’t the County taken these steps and put their furloughed employees back to work?
The Court made it clear – if the County could offer security for the judgment on appeal, through a bond or some other mechanism, they could have access to the escrowed funds. Now, with a new tax source in place, the County still has not taken action to secure the judgment. Instead, as reported today in the Birmingham News, the County has taken the position that they cannot put workers back to work until the Alabama Supreme Court rules on the appeal. Clearly, that is not the case. Why the County Commission chooses to keep its workers furloughed is perplexing – maybe they like to have a crisis…
Alabama Supreme Court Hears Occ Tax Appeal
In Legal News on August 19, 2009 at 10:33 amOn Tuesday, August 18, 2009, the Alabama Supreme Court heard oral arguments in the Jefferson County occupational tax case. Six justices heard from counsel for both the County and the taxpayers. Three justices who live in Jefferson County and pay the occupational tax recused themselves from hearing the matter.
During the hour-long oral argument, the justices peppered the lawyers with questions regarding various aspects of the case. Chief Justice Cobb promised quick action by the Court, acknowledging the expedited briefing and hearing schedule that the Court implemented for this very important case. Predicting what any court will do with any case is much like reading tea leaves. We anticipate that the Court will give the matter full consideration and apply the rule of law in reaching its conclusion.
Taxpayers’ Rights at Risk
In Legal News on August 9, 2009 at 9:18 amOn Saturday, August 8, Governor Riley called a special session of the Alabama Legislature to deal with the Jefferson County occupational tax. Since the last post on this blog, the proposed bill has been materially changed and more changes that hurt the taxpayers have been proposed.
Unlike the bill initially advertised and discussed in the media, the bill as it will be presented in the special session includes language that attempts to validate the actions of the Jefferson County Commission in collecting the old occupational tax from November of 1999 forward. This is a blatant attempt to kill the lawsuit and judgment entered in favor of the taxpayers in January by Judge David Rains. This language serves only to justify the illegal actions taken by the County Commission, who knew there was a risk that the old occupational tax would be taken away as early as 2005. This is being done despite the fact that the County’s lead attorney in the lawsuit, Bill Slaughter, has said to the Alabama Supreme Court that the legislature CANNOT effect the rights of the taxpayers.
In a filing with the Alabama Supreme Court seeking access to the money being collected and held in escrow under the old tax, Mr. Slaughter stated:
[C]onsider the hypothetical situation if the Legislature had responded on the last day of the session and passed a replacement tax. Such legislation would presumably have obviated both the right and the need of the County to collect the Act 67-406 Taxes thereafter, but such legislative action could not have affected the legal status of the taxes levied since January 12, 2009, that would still be pending on appeal. The rights of the Plaintiffs with respect to those taxes would be vested and protected from legislative intervention by Section 95 of the Alabama Constitution.
It begs the question, when the County’s lead attorney acknowledges that the Legislature cannot take away the right of the taxpayers in the lawsuit, why does the Legislature keep trying to enact language that clearly violates the Alabama Constitution? All this provision does is guarantee that there will be legal challenges to the bill that will potentially kill the work that will be done in the special session. Maybe killing the tax is the goal of the Legislature after all…
Another provision being proposed by Senator Roger Smitherman seeks to prevent a vote by the citizens of Jefferson County to phase out the occupational tax after 2012. Instead, Senator Smitherman seeks to have any vote to end the tax merely cause it to be reduced over time but never go away. Clearly Senator Smitherman puts more trust in the County Commission than in the voters of Jefferson County.
Senator Zeb Little of Cullman County has announced that he will hold a meeting in Cullman to discuss the effects of a new occupational tax on his constituents – many of whom work in Jefferson County. We applaud the actions of Senator Little and hope that more representatives in the surrounding counties will weigh in on this bill on behalf of their constituents who work in Jefferson County and who will pay any new tax that is passed, but who do not have a vote in Jefferson County.
We encourage all people who live or work in Jefferson County to contact your State legislators and let them know your thoughts as the special session gets underway. Hopefully, if a new tax is to be enacted, it is one that will be fair, legal, and with the support of the taxpayers who will bear its burden.
Is an Occ Tax Resolution in Sight?
In Legal News on August 1, 2009 at 10:45 amAs the parties to the lawsuit over the Jefferson County occupational tax complete their final submissions to the Alabama Supreme Court, consensus seems to be building in the Jefferson County legislative delegation for a bill that would enact a new occupational tax. If consensus solidifies behind this bill, Governor Riley will call a special session of the legislature to enact the bill and hopefully stave off at least part of the crisis facing Jefferson County.
The bill, which appears to have bi-partisan support from both houses of the legislature, would enact a new occupational tax at a rate of 0.45%, which is a cut from the old rate of 0.50%. The tax would be universally collected from people who work in Jefferson County. By its terms, this bill does not attempt to retroactively approve the actions of the Jefferson County Commission in collecting the invalid occupational tax since its repeal. This provision is essential – it prevents legal challenges to the bill for violating the rights of the taxpayers under the current lawsuit. This is the first bill to be proposed since Judge Rains upheld the validity of the repeal that does not attempt to infringe upon the taxpayers’ rights under Judge Rains’ Order.
Another key to this bill that has gained the support of legislators from both sides of the political aisle is a provision to put the continued collection of the tax to the voters of Jefferson County in 2012. If the voters approve continued collection – the tax will remain in effect. If the voters chose to end the tax, it will “sunset” over a 5 year period following the referendum.
Since the County Commission continues to take the position that it will not discuss settlement of the lawsuit or securing the judgment rendered by Judge Rains as instructed by the Alabama Supreme Court, this bill may be the last option available to prevent the lay-offs and shutting down of County services that the Commission has put in place. Counsel for the Commission continues to state publicly to the press and the courts that there is nothing to discuss regarding the occupational tax lawsuit. Despite protests from County employees, calls from legislators and Governor Riley to negotiate and cooperate in resolving the occupational tax lawsuit, and new lawsuits seeking to bar budget cuts by the Jefferson County Sheriff and Tax Assessor (neither of which the County Commission appears to be negotiating with in good faith), the County Commission continues to stand firm in its position of obstinance and refusal to communicate. Several legislators have lamented the fact that none of the commissioners have spoken with them about this financial crisis. Maybe that will change when Commission President Collins returns from the meeting of the Republican National Committee she is attending in San Diego this week as the lay-offs and cut backs in County services take effect. Hopefully, if this bill is approved, the Commission will use the resources granted to them wisely and develop a plan of fiscal responsibility to restore the confidence of the residents of Jefferson County.
