Connect with us

Hi, what are you looking for?

Legislature

Occupational tax bill died this session. What was the reason?

SB65 would have cut the occupational tax in certain cities down to 1 percent gradually over time, virtually eliminating it.

STOCK

Sen. Andrew Jones’ occupational tax bill did not make it through the Legislature this session. 

SB65 would have cut the occupational tax in certain cities down to 1 percent gradually over time, virtually eliminating it. The bill would also restrict cities from enacting new taxes. 

Jones has said he believes occupational taxes hurt economies and are regressive. The Alabama League of Municipalities opposed the legislation, saying that many cities needed occupational taxes to fund important services and programs. 

Craig Ford is the mayor of Gadsden, one of the cities that rely on occupational taxes. Ford fought against the bill throughout the session. He said it would have crippled his city.

“It would have taken $15-20 million out of our $70 million budget,” Ford said. “ And we’d have to lay off firemen, policemen — probably a third of our city employees. And we’d have to cut essential services to all of our citizens.”

Ford is still perplexed by Jones’ reasoning for the bill, despite it not passing. 

“No one hates taxes as much as me but I understand they’re a necessary evil of government,” Ford said.

Advertisement. Scroll to continue reading.

The attorney general told Ford that if they had a bond tied to the OOLC and Jones did try to eliminate the occupational tax, it would be unconstitutional, Ford told APR.

APR reached out to Jones for comment via phone and email but received no response.

Patrick Darrington is a reporter at the Alabama Political Reporter. You can reach him at [email protected].

More from APR

Legislature

"The Republican-led Legislature is unable to draw maps that offer black voters a chance to fairly elect representation of their choice," Sen. Merika Coleman...

Opinion

We must eliminate the second half of the grocery tax, and a legislative study group we empaneled is already running the numbers.

State

Alabama will now join the 47 other states, including our border states of Florida, Georgia and Tennessee, that do not fully tax groceries.

Opinion

This small change likely will result in large savings for Alabamians who are working hard to make ends meet.