State court: JeffCo doesn't have to refund job tax - WBRC FOX6 News - Birmingham, AL

State court: JeffCo doesn't have to refund job tax

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Good news for Jefferson County. The Alabama Supreme Court ruled Friday that the county will not have to refund $100 million from a replacement occupational tax.

The original job tax was struck down and the occupational tax that passed the Alabama legislature was also declared unconstitutional. Refunds were ordered in the tax was struck down.

Attorneys sought to have refunds declared in the replacement tax but the state high court disagreed. Jefferson County Manager Tony Petelos says it would have created a financial hardship for the county.

"We are struggling because of the loss of the occupational tax revenue it generated. For us to have to cough up $100 million dollars would be absolutely devastating to the county and the services we provide," Petelos said.

In another ruling Jefferson County can keep $6.5 million it received as a part of the settlement over the old job tax after the county agreed not to implement it retroactively back to 1999. 

Meanwhile talks continue with creditors to end the county's bankruptcy. Jefferson County Commission President David Carrington will return from Los Angeles today. Carrington and Commissioner Jimmie Stephens have been involved in talks with creditors about a consensual agreement to end bankruptcy. Carrington says there is no agreement now and talks will resume in New York in December.

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