On January 15, 2010, Judge David Rains entered an Order requiring the Jefferson County Commission to deposit $1.1 million into the occupational tax settlement fund to cover the cost of refunds to the taxpayers.   Judge Rains found that the County had claimed that it did not have the resources to process a refund and that the system put in place was the most cost effective.

Judge Rains further held that the County had been allowed to spend over $600 million in occupational taxes that were collected between the date the Alabama Legislature repealed the occupational tax and the date of his January 12, 2009 Order enforcing the repeal.  Judge Rains states, “The equities of this case do not support or justify any further waiver of the County’s obligations to the taxpayers who are due refunds under this Court’s Order of January 12, 2009.  The County owes the taxpayers a refund and the cost of administering that refund should be borne by the County.”

Further, Judge Rains ordered the County to deposit $2,450,547.92 for interest that has accrued under his January 12, 2009 Order, and further ordered that interest on the total amount owed back to the class, $47,812,627.95, shall accrue interest going forward at $15, 719.22 per day until the matter is resolved and refunds can be made.

The County has recently appealed Judge Rains’ latest orders and the Alabama Supreme Court has entered an expedited schedule for the parties to file briefs with the Supreme Court on those issues.