As 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.