Sen. Beason Blocked Jefferson County’s Tax Bill

by San Antonio Attorney

Alabama’s Jefferson County sustained an additional fiscal blow when the state legislature did not pass a bill that permitted it to collect tax by as much as $50 million more each year and to charge for net sales revenue.

Paul DeMarco, a Republican state representative, said that the bill failed to pass in the senate overnight and so it did not come to the House for a voting on the last day of the legislative session that concluded at midnight.

Jefferson County is trying to prevent a municipal bankruptcy with more than $3.2 billion financial obligation on sewer bonds. However, it has a funding deficit of $9 million monthly for its operation.

In order to recover from the deficit, the county is going to put 967 of its employees, that is more than 30 percent of its workforce, on administrative leave. This will start on June 18 and go on until September 30 or later, and many of them will not be returning, said the county’s finance commissioner in a meeting with the county finance committee.

Senator Scott Beason had said earlier that he is going to prevent a vote, and county representatives validated that his objection was the reason why the bill was not passed. Some of his colleagues were angered by his move.

It is possible to prevent a vote under the constitution of Alabama. There is also a stipulation that a county can only increase its taxes if the legislature has granted “home rule”.

Beason previously said that the county can use its emergency funds. It also did not require the power to impose its own taxes. His argument was disputed by analysts and country officials.

According to Jefferson County’s finance commissioner Jimmie Stephens, Senator Beason is suggesting that unearmarking is the most effective way to get funds. The county would have to obtain money from indigent care fund which is not allowed.

If you or your company is having issues financially, you cannot depend on political changes to keep you in business.  Contact a San Antonio Attorney right away when you know there is a problem, so you can get your debt restructured or wiped out.

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