County occupational tax bill passes; Riley will sign

Published 2:31 pm Friday, August 14, 2009

The Alabama State Legislature has passed a bill authorizing a new occupational tax for Jefferson County.

The new bill allows the county to continue collecting the 0.5% tax on everyone except doctors, lawyers and other professionals until January 1. After that, a new tax of 0.45% would be imposed on all workers in Jefferson County. The tax would be gradually phased out, though, beginning in 2012.

The State Senate passed the bill by a 12-9 vote Friday. The House had narrowly passed the bill on Wednesday. Governor Bob Riley announced he would try to sign the bill later on Friday.

The tax will replace one that was ruled as unconstitutional in a lawsuit earlier this year. That left the county without an expected $75 million in tax revenues, which led the county commission to shut down satellite courthouses and lay off hundreds of workers.

The new tax will be collected immediately upon Riley’s signing.

More on this breaking story next week in The North Jefferson News.

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