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Archive for the ‘Uncategorized’ Category


Jefferson County to Pay Cost of Occ Tax Refunds

In Uncategorized on January 15, 2010 at 1:58 pm

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allowed to spend over $600 million in occupational taxes that were collected between the date the Alabama Legislature repealed the occupational tax and the date of his January 12, 2009 Order enforcing the repeal.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.


Children’s Jewelry Recall

In Uncategorized on January 14, 2010 at 11:26 am

The U.S. Consumer Product Safety Commission announced it is opening an investigation into The Associated Press’s findings that China’s low cost jewelry makers have been using cadmium in children’s jewelry.  Cadmium is shiny, strong and malleable at low temperatures, but has significant health hazards. Cadmium is a known carcinogenic. An investigation by AP found that 12 of 103 pieces of mainly Chinese-made children’s jewelry bought in the Unites States contained at least 10 percent cadmium, some in the 80-90 percent range. Two had less than 10 percent and the rest had none. The AP’s investigation has triggered retail superstore Wal-Mart, and the jewelry and accessory store Claire’s to pull all items cited by the investigation.

In all, China shipped about 1.3 million pounds of jewelry abroad in 2008 — a 15 percent decrease from the previous year, according to the Hong Kong-based consulting firm Global Sources. The Minneapolis Star Tribune (1/12) editorialized, “Efforts to protect Americans from contaminated products need to focus beyond cadmium.” Congress “also needs to bolster the safety of American-made products. The nonpartisan General Accounting Office has called for an overhaul of the toothless Toxic Substances Control Act, concluding that it emasculates federal regulators to the point that ‘the nation lacks assurance that human health and the environment are adequately protected.” The Star Tribune endorses legislation to reform the Act.

The children’s jewelry in question includes “The Princess and The Frog” movie-based pendants sold at Wal-Mart stores.  For more information, please see: http://www.msnbc.msn.com/id/34807662/ns/health-kids_and_parenting/


Occpational Tax Refund is Over $50,000,000.00

In Uncategorized on December 23, 2009 at 5:22 pm

On December 23, 2009, Judge David Rains entered an Order confirming that Jefferson County owes the taxpayers $ 50,262,456.83 for amounts collected under the County’s prior occupational tax.   Judge Rains held that the taxpayers had a vested right in this refund and that the subsequent enactment of the new occupational tax did not take that right away.  This refund covers taxpayers whose payments of the occupational tax and business license fee were collected by the County after January 12, 2009 and before August 14, 2009.    

This Order comes almost one year after Judge Rains declared the occupational tax invalid.  His Order of January 12, 2009, was affirmed by the Alabama Supreme Court on August 25, 2009.  Since that ruling, the County has continued to vehemently oppose the payment of refunds to the taxpayers.  Most recently, the County filed a motion seeking to set aside the escrow order under the auspices of the new occupational tax.  The County took the position that the new tax mooted the relief ordered by Judge Rains – despite the Alabama Supreme Court having asked the parties to brief the issue of whether the new tax mooted the case BEFORE hearing oral arguments and entering the August 25, 2009 opinion affirming Judge Rains.  After making a thorough analysis of the arguments presented, Judge Rains denied the County’s motion. 

In an effort to move the refund process forward, the Court appointed Edgar C. Gentle, III, as a special master to oversee the refund.  A settlement fund has been established and the County has transferred $37,796,302.06 to that fund.  According to Judge Rains’ Order of December 23, 2009, an additional $12,466,154.77 is due to be transferred, comprised of both principal ($10,016,325.89) and interest owed ($2,449,828.88).  Mr. Gentle is in the process of collecting the information necessary from employers in Jefferson County to identify those who are entitled to receive a refund. 

As much as we wish we could say this is the final chapter in the occupational tax fight and that refunds will be forthcoming quickly, the County has informed the Court that it intends to appeal these rulings to the Alabama Supreme Court.  We are hopeful that the Supreme Court will dispose of these matters as quickly as possible so that the taxpayers of Jefferson County can receive their refunds.  Going forward, the Court’s judgment will be earning interest at the rate of $478,126.28 per month until the matter is resolved and the taxpayer refunds can be processed.

Baby Beds Recalled for Suffocation Hazard

In Uncategorized on December 9, 2009 at 11:16 am

On December 8, 2009, the Consumer Product Safety Commission has issued a notice of the voluntary recall of approximately 24,000 Amby Baby Motion Beds. Do to the side-to-side rocking motions of the hammock beds infants can roll and become trapped between the hammocks fabric or mattress pad, posing risk of suffocation. Amby is aware of two infant suffocation deaths caused by the Amby Baby Hammock. There is only one model of the Amby hammock available which can be identified by a label sewn onto the hammock stating: “Amby-Babies Love It, Naturally.” The hammocks were sold online at Ambybaby.com as well as other retailers from January 2003 through October 2009 for about $250. Consumers should immediately stop using the Amby Baby motion beds/hammocks and contact Amby Baby USA for a free repair kit.  For additional information, contact Amby Baby USA toll-free at (866) 544-9721 between 9 a.m. and 5p.m. ET Monday through Friday or visit the firm’s Web site at www.ambybaby.com


Largest Crib Recall In History

In Uncategorized on November 24, 2009 at 10:19 am

The Consumer Product Safety Commission has issued a notice of the voluntary recall of more than 2.1 million Stork Craft drop-side cribs. The cribs’ plastic hardware can break, deform, or parts can become missing. In addition, if the drop-side is attached upside-down it can lead to damage of the plastic clips and possible detachment. When the drop-side detaches, it creates space between the drop-side and the crib mattress. The bodies of infants and toddlers can become entrapped in the space possibly leading to suffocation. Complete detachment of drop-sides can lead to falls. 

CPSC, Health Canada, and Stork Craft are aware of 110 incidents of drop-side detachment; 67 incidents occurred in the United States and 43 in Canada. The incidents include 15 entrapments; 12 in the U.S. and three in Canada. Four of the entrapments resulted in suffocation: a 7-month-old in Gouverneur, N.Y.; a 7-month-old in New Iberia, La.; a 6-month-old in Summersville, W.Va.; and a 9-month-old in Bronx, N.Y. Included in these incidents are 20 falls from cribs; 12 in the U.S. and eight in Canada. 

This recall includes Stork Craft cribs with manufacturing and distribution dates between January 1993 and October 2009. This recall also includes Stork Craft cribs with the Fisher-Price logo that have manufacturing dates between October 1997 and December 2004. The Stork Craft cribs with the Fisher-Price logo were first sold in the U.S. in July 1998 and in Canada in September 1998. This recall does not involve any cribs that do not have a drop-side or any cribs that have metal rod drop-side hardware. 

Approximately 1,213,000 units were distributed in the United States and 968,000 units distributed in Canada. The cribs were sold in the United States and Canada at stores including BJ’s Wholesale Club, J.C. Penney, Kmart, Meijer, Sears, USA Baby, and Wal-Mart stores and online at Amazon.com, Babiesrus.com, Costco.com, Target.com, and Walmart.com from January 1993 through October 2009 for between $100 and $400. 

CPSC also issued a reminder to parents not to use any crib with missing, broken, or loose parts. Make sure to tighten hardware from time to time to keep the crib sturdy. When using a drop-side crib, parents should check to make sure the drop-side or any other moving part operates smoothly. Always check all sides and corners of the crib for disengagement. Any disengagement can create a gap and entrap a child. In addition, do not try to repair any side of the crib, especially with tape, wire or rope. 

For additional information, contact Stork Craft toll-free at (877) 274-0277 anytime to order the free repair kit, or log on to www.storkcraft.com.  If you or someone you know has been injured by a defective product and are seeking more information, please go to our “about us” page and contact Hill | Turner LLC.


Court Agrees With Taxpayers’ Lawyers – It Is Time for Refunds

In Uncategorized on November 21, 2009 at 9:57 am

Circuit Court Judge David Rains held a hearing on November 20, 2009, to address post-judgment issues pending in the Jefferson County occupational tax lawsuit.  After three hours of testimony and argument, Judge Rains instructed counsel for the County, as well as the County’s Revenue Director, to work in good faith with the lawyers for the Taxpayers and their designated settlement administrator, to devise a plan for prompt refunds to the Taxpayer Class. 

“Judge Rains was clear,” said Sam Hill. “He is ready for the people who paid this tax to receive their refunds.  Ed Gentle provided a great starting point.  Now we have to fill in the blanks so these refunds can happen.”  Added Allen Dodd, who argued on behalf of the Taxpayer Class at the hearing, “I was surprised and happy to hear the County’s lawyers say that they were willing to work in good faith with us toward this end.  The next several weeks will be very busy, but I am optimistic that with everyone’s work, we will have a plan in place to make these refunds happen soon.” 

While not ruling from the bench, Judge Rains instructed the County to assume he would deny their motion to dissolve the injunction he entered in January and that the money would go back to the Class – not to the County.  “As Judge Rains said, we expect the County to appeal and fight every step of the way,” said Jim McFerrin.  “While I hope the message Judge Rains made clear from the bench was not lost on the County, I expect they will continue to do all they can to avoid having to comply with the orders of both Judge Rains and the Alabama Supreme Court.   Maybe they’ll prove me wrong and we can wrap this up.  Time will tell.” 

The parties were given time to respond to issues raised by the County the night before the hearing.  But, Judge Rains told the parties that addressing those issues was not to be used as a reason for any delay in getting the refund process in place. 

For more on this hearing, please see http://blog.al.com/birmingham-news-stories/2009/11/judge_pushes_jobs_tax_refunds.html


Hill | Turner LLC Hosts Judicial Candidate

In Uncategorized on November 13, 2009 at 10:08 am

Hill | Turner LLC was proud to host a fundraising event for Ferris Ritchey, candidate for Shelby County Circuit Judge, Place 4, on November 12, 2009.  The firm wishes Ferris the best of luck in his campaign and thanks everyone who came out to show support for Ferris.  For more information about Ferris and his campaign, please see www.electferrisritchey.com


Yaz/Yasmin Birth Control Injuries

In Uncategorized on October 21, 2009 at 12:32 pm

Bayer Corporation, the maker or the popular birth control Yaz, and its predecessor Yasmin, is currently facing legal issues due to potential health problems associated with these drugs. While all hormone based birth control poses some health risks, the risks are greater with Yaz and Yasmin because they are created using a third generation progestin called drospirenone.  Drospirenone can cause an increase in potassium levels in the blood, which can lead to hyperkalemia.  Hyperkalemia has been linked to various medical conditions, including heart rhythm disturbances, such as extrsystolies, pauses or bradycardia.  If left untreated hyperkalemia can be fatal.  Drospirenone also increases the risk of blood clots forming, including deep vein thrombosis which can lead to heart attacks, pulmonary embolisms, or can travel to the brain causing strokes.  These are serious health concerns that consumers should be aware of.  Since Yasmin and Yaz have been on the market, there have been hundreds of accounts of injury and death reported in users of these drugs.   If you or someone you know has been injured by a defective product and are seeking more information, please go to our “about us” page and contact Hill | Turner LLC.


Chinese Drywall Contamination

In Uncategorized on October 21, 2009 at 12:29 pm

Contaminated Chinese drywall began entering the country in 2001 through two dozen ports.  This contaminated drywall can cause serious health issues including, but not limited to, upper respiratory problems, nose bleeds, headaches, eye irritation, and allergies. Chinese drywall emits gasses which corrode copper and metal surfaces, including electrical wiring, air conditioners and appliances. These gasses not only destroy homes, but the personal property within homes, such as televisions, computers and electronics.  The majority of the contaminated drywall entered the country during the construction boom from 2004-2006. There are many theories as to what is causing these issues; however, as of now the exact cause is unknown. If you believe that your home may be contaminated or there are telltale signs in your home including a rotten egg or sulfur smell emanating from the contaminated walls, Chinese labels on the drywall itself, and corrosion of copper wiring and appliances in the home, please contact Hill | Turner LLC for more information about protecting your rights.

Supreme Court Upholds Repeal of Occupational Tax

In Uncategorized on August 25, 2009 at 4:04 pm

In an unanimous opinion today, the Alabama Supreme Court affirmed the repeal of the Jefferson County occupational tax.

The Dangers of E-Cigarettes

In Uncategorized on July 23, 2009 at 10:42 am

On July 22, 2009, the FDA announced findings of carcinogens and other toxic chemicals in e-cigarettes.  The text of the FDA announcement and a link to the MedWatch report follows.  Parents should be particularly wary of these tobacco alternatives finding their way into the hands of children.  As these very harmful devices are produced in flavors like chocolate and mint and are easy to purchase – they are clearly being targeted to a young techno-savy consumer who thinks they are doing something safer than smoking.

 

FDA notified healthcare professionals and patients that a laboratory analysis of electronic cigarette samples has found that they contain carcinogens and toxic chemicals such as diethylene glycol, an ingredient used in antifreeze. Electronic cigarettes, also called “e-cigarettes,” are battery-operated devices that generally contain cartridges filled with nicotine, flavor and other chemicals. The electronic cigarette turns nicotine, which is highly addictive, and other chemicals into a vapor that is inhaled by the user. These products are marketed and sold to young people and are readily available online and in shopping malls. They are also available in different flavors, such as chocolate and mint, which may appeal to young people.

The FDA’s Division of Pharmaceutical Analysis analyzed the ingredients in a small sample of cartridges from two leading brands of electronic cigarettes. In one sample, the FDA’s analyses detected diethylene glycol, a chemical used in antifreeze that is toxic to humans, and in several other samples, the FDA analyses detected carcinogens, including nitrosamines. These products do not contain any health warnings comparable to FDA-approved nicotine replacement products or conventional cigarettes. Because these products have not been submitted to the FDA for evaluation or approval, at this time the agency has no way of knowing, except for the limited testing it has performed, the levels of nicotine or the amounts or kinds of other chemicals that the various brands of these products deliver to the user.

Health care professionals and consumers may report serious adverse events (side effects) or product quality problems with the use of e-cigarettes to the FDA’s MedWatch Adverse Event Reporting program either online, by regular mail, fax or phone.

Read the complete MedWatch 2009 Safety summary, including links to FDA supporting information, at:

http://www.fda.gov/Safety/MedWatch/SafetyInformation/SafetyAlertsforHumanMedicalProducts/ucm173327.htm


Occupational Tax Stalemate Continues

In Uncategorized on July 13, 2009 at 2:04 pm

Amid continued calls for budget cuts and contract revocation by the Jefferson County Commission, there is a growing chorus of voices calling upon the Commission to resolve the occupational tax lawsuit and bring relief to the County.

While the parties to the case are moving forward with the appeals process, entities including the Jefferson County Sheriff, the Alabama State Bar, the Jefferson County Circuit Court, and members of the Jefferson County legislative delegation have urged the County Commission to seek resolution of the lawsuit that upheld the repeal of the occupational tax.  Throughout this process, the official position put forward by the County Commission has been that there is no room to negotiate and that only deep cuts in vital County services can bring an end to the financial crisis facing the County.  It seems that with each passing day, more information about the mismanagement of County resources and contracts continues to surface, while the County Commission digs its heels in deeper and deeper.

We can only hope that voices of reason continue to call upon the County Commission to act in the best interests of the citizenry and that the Commission will begin to listen.


Alabama Supreme Court Denies Jeff Co. Request for Stay

In Uncategorized on June 23, 2009 at 4:09 pm

Today the Alabama Supreme Court unanimously denied the Jefferson County Commission’s request for a stay of the Order entered by Judge David Rains requiring the County to hold in escrow all sums collected under the occupational tax.  All money collected by the Jefferson County Commission after May 18, 2009, must be held in escrow until the appeal taken by the County is resolved.

The Supreme Court, citing concerns with the County’s obligations under the Due Process Clause of the U.S. Constitution if it is allowed to spend the collected sums unchecked, left room in its Order for the County Commission to post a satisfactory bond with the trial court to insure that the funds collected by the County are available to refund to the taxpayers should Judge Rains’ Order finding the tax to have been validly repealed is affirmed.


Consumer Litigation Update

In Uncategorized on June 18, 2009 at 11:06 am

Recent Class Action Settlements

Hill | Turner LLC has recently settled class action cases against two companies for sending junk faxes.  The first case involved the Birmingham, Alabama based restaurant “Chappy’s Deli.”  That case was filed in the Circuit Court for Jefferson County, Alabama.  The second case was filed in the United States District Court for the Northern District of Georgia against Pitney Bowes Corporation.  In each of these cases, the company involved had sent tens of thousands of unsolicited faxes in violation of the Telephone Consumer Protection Act.  Consumers and businesses who received these illegal faxes were sent notice of the settlements and may make claims with the claims administrator in each case as provided for in the notice of settlement they received. 

If you have received unsolicited junk faxes, please visit our About Us page and contact HILL | TURNER LLC with any questions you may have about protecting your rights as under the Telephone Consumer Protection Act and the Junk Fax Prevention Act.

 

New Filings

Hill | Turner LLC has filed class action lawsuits on behalf of property owners in Mobile and Baldwin counties challenging the way those counties handle over-bids associated with the sale of property for back taxes.  The suits allege that these counties fail to properly apply interest earned on bids made against the property in excess of the back taxes owed.  Additionally, the lawsuits allege that these counties fail to inform the property owners of the overbids and the interest being earned on the overbids.  Both counties have denied any misdeeds. 

The firm has also filed a class action in the United States District Court for the Northern District of Alabama on behalf of consumers who have “non-recourse lawsuit funding” contracts with Oasis Legal Finance, LLC.  The defendant claims that it is buying an interest in the consumer’s personal injury lawsuit, in exchange for repayment of the amount of money paid to the consumer plus interest at an annual percentage rate of almost 36% if the lawsuit is successful.  In reality, these lenders are making high interest loans outside the regulations applicable to most lending institutions in the State by calling them a purchase.  These companies are making a bet that the injured or sick person’s lawsuit will resolve favorably and then the company will get a big payout. The suit alleges these loans are illegal under Alabama law and Hill | Turner LLC is seeking relief for consumers.

 

Please check www.AlabamaLegalRights.com for updates on these cases.


Updates for Alabama Consumers

In Uncategorized on June 18, 2009 at 9:55 am

Zicam – On June 16, 2009, the U.S. Food and Drug Administration (FDA) notified consumers to stop using Zicam nasal gel and nasal swab products.  These homeopathic cold remedy products have been associated with the loss of the sense of smell which, in some cases, may be permanent.  The manufacturer is offering refunds to consumers and has agreed to stop shipping the products in question.  Anyone who has experienced the loss of the sense of smell after using Zicam nasal gel or nasal swab products should contact a health care professional immediately.  The company has been settling lawsuits for consumers who have lost the sense of smell while using these products since 2006.

Viking Refrigerators – The Consumer Product Safety Commission has issued a notice of voluntary recall of Viking refrigerators.  These refrigerators have doors that can detach and fall on users.  The models involved are built-in 48 inch wide side-by-side refrigerator/freezers and 36 inch wide refrigerators with bottom freezers.  These models were sold between July 1999 and April 2006, with retail prices ranging from $4,725 to $6,400 per unit.  Consumers should contact Viking to schedule a free in-home repair.  Their toll free number is (888) 345-2650.

Starbucks Coffee Grinders – On June 16, 2009, the Consumer Product Safety Commission announced a voluntary recall of Starbucks Barista Blade Coffee Grinders and Seattle’s Best Blade Coffee Grinders made by Tsann Kuen.  The units can fail to turn off or can turn on unexpectedly, leading to lacerations to unsuspecting users.  The units have been sold at Starbucks and Seattle’s Best coffee shops since March 2002, and retail for approximately $30.  Consumers should immediately stop using these grinders and contact Starbucks toll free at (866) 276-2950 to receive a free replacement grinder.

Black & Decker Coffee Makers – On June 23, 2009, the Consumer Product Safety Commission announced a voluntary recall of Black & Decker® brand Spacemaker™ coffee makers.  The brew basket on these coffeemakers can shift out of alignment allowing hot water to overflow, causing a scalding and burn hazard to consumers.  This model has an under-cabinet mount, programmable digital clock/ timer, removable water reservoir and either a 12- cup glass carafe or an 8- cup thermal carafe.  The recall includes only model numbers ODC440, ODC440B, ODC450, and ODC460.  This number can be located on the back of the coffee maker.  Consumers should immediately and contact Applica for a free replacement brew basket.  Their toll-free number is (866) 669- 4442.

If you, a family member or friend have been injured by a defective product, please visit our About Us page and contact HILL | TURNER LLC with any questions you may have about protecting your rights as a consumer.


Is the Sky Really Falling?

In Uncategorized on May 19, 2009 at 5:51 pm

As the Jefferson County Commission publicly decries the failure of the Alabama Legislature to pass a new occupational tax and suggests that chaos will unfurl in light of the occupational tax revenues being escrowed during the appeal of the case which held the tax to be invalid, a review of the public financial records compiled annually by the County suggests things may not be as bad as the County Commission would have us believe.

Gregory T. Reagan – a certified public accountant, certified fraud examiner, certified business valuation analyst and forensic accountant – has reviewed audited financial records kept by the Jefferson County Commission as required by State law for the fiscal years of 2000 through 2007, along with the operating budgets for fiscal years 2008 – 2009.  The review demonstrates several interesting points, as summarized by Mr. Reagan in an affidavit filed in the occupational tax lawsuit (emphasis added by this author)

The financial statements of the Jefferson County Commission for the year ended September 30, 2007 were audited by an independent certified public accounting firm under auditing standards generally accepted in the United States of America and whose report was dated January 12, 2009, meaning that the disclosures within the audit report convey relevant information about events existing at September 30, 2008 and subsequently through January 12, 2009.  As a result, this is presently the most current and reliable information about the Jefferson County Commission’s financial status.  I have, therefore, relied heavily on that information in formulating my opinions expressed in this affidavit. These audited financial statements disclose that:

    a. all of Jefferson County’s debt obligations, other than the Series 2001-B bonds, are non-recourse as to the General Fund.
    b. Jefferson County will have reduced expenditures of $10 million annually starting in 2009 to fund General Fund needs because its final payment from the General Fund to the Birmingham-Jefferson Civic Center Authority was made in December 2008.

    c. Jefferson County’s General Fund for the fiscal year October 1, 2006 to September 30, 2007 reported total audited revenues of $263,190,000 and total audited expenditures of $277,818,000 and, therefore, spending exceeded revenues by $14,628,000. The 2007 fiscal year operating results are aberrant to previous years.

The audits performed by the Alabama Department of Examiners of Public Accounts for the period covering the fiscal year ending September 30, 2000 through the fiscal year ending September 30, 2006 (seven years) determined that the Jefferson County Commission’s General Fund produced excess revenues over expenses before other financing uses and sources, which were primarily comprised of inter-fund transfers, in an aggregate surplus of $180,854,000, or an average annual surplus of $25,836,286.

The document entitled Financial Statements All Counties (For the 2007-2008 Fiscal Year), as published by the Alabama Department of Examiners Public Accounts, reported that Jefferson County’s 2007-2008 Fiscal Year General Fund had total revenues of $269,391,000 and had total expenditures of $274,402,000 (including capital outlays that vary annually), and, therefore, expenditures exceeded revenues by $5,011,000.

The Jefferson County Commission’s adopted budget for Fiscal Year 2008-2009, estimates that the General Fund will have total revenue of $289,252,998. The Commission estimates it will spend $303,674,498 for actual services resulting in a deficiency of $14,421,500, which will be fully funded by net transfers from other governmental funds of $14,421,500 resulting in break-even operations for fiscal 2009. 

***

From fiscal year 1999–2000 to fiscal year 2005–2006, the Jefferson County Commission operated the County, and provided for County governmental services while producing a General Fund aggregate excess of $180,854,000.  General Fund expenditures averaged $163,611,000 for the fiscal years 2000 through 2006.  These increased to $277,818,000 in fiscal year 2007, with general government expenditures alone increasing to $152,777,000 from $85,949,000. Further, capital outlays increased exponentially from average expenditures of $2,211,000 during the seven years of 2000 – 2006 to a total of $10,083,000 in 2007.  This increase alone represents more than 10% of annual occupational taxes.  The budget for fiscal year 2008 (the only information available for the 2008 fiscal year) reflected plans to spend $297,220,201 and the budget for fiscal year 2009 reflects plans to spend $303,674,498.  Since the County’s current primary financial problems are related to debt obligations that are non-recourse to the General Fund, it is unclear why General Fund expenditures have escalated so significantly in recent years.  It seems to me that more stringent spending controls are in order and such should have the capacity to return the Commission to profitable operations without the need for the escrowed occupational and business license taxes and fees.  Based on the information provided me to review, it is my opinion that the current Jefferson County Commission should be able to largely replicate the budgetary constraints utilized by the previous Commissions to allow the General Fund to return to a reasonable degree of fiscal discipline necessary to provide basic governmental services without the receipt of the escrowed occupational and business license taxes and fees. Jefferson County’s General Fund has a fund balance of over $40,000,000 at September 30, 2007.

The review by Mr. Reagan begs the question, “What happened in 2007 and thereafter that has lead to expenditures exceeding revenues?” This is the question the County Commission must be held to answer if Jefferson County is to return to fiscally sound operation. If the sky is falling, it is because the Jefferson County Commission has been knocking the foundation out from below with excessive spending. The County Commission clearly should be able to operate the County without the illegal occupational tax. It is time the Commission exercised some restraint and acknowledge the true problem is with its spending – not the revocation of an illegal tax.


Representative Canfield Weighs In on the Occupational Tax

In Uncategorized on May 15, 2009 at 8:19 pm

The Problem With the Occupation Tax

Posted by Rep.Greg Canfield on 15-May-2009

To best understand how Jefferson County got to this place with the occupation tax requires a quick review of the history of this tax. First, it’s important to know that under the Alabama Constitution of 1901 counties do not have authority to levy taxes unless authorized by the Legislature. Consequently, the Legislature enacted Act 1967-406 to authorize counties with a population above 500,000 (this specifically applied only to Jefferson County)to levy a license or privilege tax upon any person engaged in business as long as that person was not already paying a license tax to the State of Alabama. Subsequently, Jefferson County passed Ordinance 1120 to impose an occupation tax only to those persons not required to purchase a license from the state. Historically, four different legislative acts have been enacted on this issue and a total of six lawsuits adjudicated since 1987 on this tax.

The problem today stems from the passage of a 1999 legislative act passed to repeal the original Act 1967-406. The repealing Act 1999-669 was litigated and has ultimately been upheld as law in the recent order of January 12, 2009 by Circuit Judge David A. Rains. The bottom line on the Jefferson County Occupation Tax is that it no longer is a legally valid tax and the approximate $75 million per year collected from this tax is to be lost without action by the Legislature to pass a new occupation tax.

The controversy in the Legislature today relates to the fact that of the several bills introduced this session, only HB 811, sponsored by Rep. John Rogers, is in position for passage prior to the end of this Regular Session. Originally, HB 811 passed the House with numerous earmarks and removed the exemptions in the original Act 1967-406. When HB 811 was referred to the Senate the bill was amended by stripping out all previous earmarks and restoring the exemptions of the original Act 1967-406. As sponsor of HB 811, Rep. Rogers controls his bill and its movement to the floor of the House to concur or non-concur with the amended Senate version of his bill. In numerous discussions with Rep. Rogers he notes reservations about the amended version from the Senate and has remained steadfast in his decision to withhold HB 811 from action. This version remains controversial to some and is considered to have possible constitutional problems.

I have personal reservations about the constitutionality of any occupation tax. The Alabama Constitution generally limits authority to county governing bodies to those expressly granted by the Legislature (the wisdom of this Constitutional limitation can be debated in another forum). The 25th Amendment to the Alabama Constitution provides for a State income tax, but does not expressly grant such authority to a county. In my opinion, Act 1967-406 and all legislation following it, only provides for the county to levy a business license tax or privilege tax and since not expressly granted by the Constitution, any tax on gross receipts is an income tax and therefore may be unconstitutional. With a history of six lawsuits following the occupation tax, it is apparent that this tax has always been on shaky legal ground.

Even with the above being stated, it is a fact that Jefferson County has operated in a manner that built a dependency on the revenue generated by the occupation tax. It is now a matter of public policy that should qualify for legislative deliberation, debate and action. Even though I have personal reservations regarding the constitutionality of this tax I welcome movement of HB 811 for consideration and an up or down vote in the Alabama House of Representatives. Absent any action on HB 811, the only remaining action to be taken will reside with the current appeal by Jefferson County to the Alabama Supreme Court.

Jefferson County Senators Play Switcheroo with Pending Bills

In Uncategorized on April 30, 2009 at 9:56 pm

In a closed door session this afternoon, Local Legislative Committee #2 substituted Senate Bill 488 for House Bill 811.  Senate Bill 488 was defeated in committee yesterday, April 29.  The full House of Representatives passed House Bill 811.  Senator Coleman, who sponsored Senate Bill 488, serves on Local Legislative Committee #2.  This substituted Bill will now go before the full Senate for a vote.  If it passes, it will go before a conference committee which will be made up of three Jefferson County House delegates and three Jefferson County Senators.  All three of the Senators who will be on the conference committee will be members of Local Legislative Committee #2 – the same Senators who made this substitution.  Senator Coleman is expected to be one of those Senators.                       

While within the procedures of the Alabama Legislature, this substitution of the defeated Senate Bill for the passed House Bill is yet another attempted end run around the Courts and a flagrant attempt to deny the taxpayers of Jefferson County the relief awarded to them by Judge Rains.   This is not the fix Jefferson County needs and the taxpayers of the county will be the ultimate losers of this game.