Legislators Propose New Business License Tax to Help Massive Jefferson County Bailout

In a historic meeting, Jefferson County lawmakers will work today, Wednesday, May 25, 2011, on a bill to prevent a near shutdown of county government services with the advent of a county bankruptcy looming. The county is faced with a huge deficit that was brought about by an Alabama Supreme Court ruling that the occupational and business license taxes set in 2009 are unconstitutional and must be abolished. Creating a new business license tax is one of the proposed ways to help raise the $50 million officials say is necessary to keep county services running.

Under Alabama Law, only the Legislature can authorize the county to impose any sort of tax. It takes five days to pass a bill and there are only five meeting days remaining in the 2011 legislative session, hence the importance of today’s meeting.

"Tomorrow is huge," Jefferson County Commissioner Jimmie Stephens said yesterday. "Tomorrow is going to be the most important legislative day in Jefferson County in its history."

If the legislature fails to institute a new tax, county funds will run dry in July. Government workers will be most affected by this as commissioners say it may have to lay off up to 1,000 employees. Job layoffs can start as early as next week.

According to Alabama Live, “Legislators are split over whether to grant the cash-strapped county home rule,” to impose new taxes.

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