HB235 Alabama 2012 Session

Summary

Primary Sponsor

Demetrius C. Newton

Democrat

Session

Regular Session 2012

Title

Jefferson County, occupational tax, rate distribution

Summary

HB235 would let Jefferson County impose a new Occupational Business Tax on certain individuals doing business there, up to 0.45% of gross receipts, with money going to the county's general fund.

What This Bill Does

It authorizes the county to levy a license tax on natural persons engaged in business activity in Jefferson County and on those whose employment income is subject to withholding, at a rate not exceeding 0.45% of gross receipts (after subtracting amounts withheld for health insurance and retirement). The tax proceeds would go to the county's General Fund, with penalties, interest, and costs of collection for late payments. The county can adopt rules to administer the tax, and collection can involve employers. A provision excludes the gross receipts of pass-through entity owners from the tax when the entity’s receipts are used to measure an entity-level license tax.

Who It Affects

• Natural persons engaged in business activity in Jefferson County who are not already required to pay certain state or county license taxes, who would owe the Occupation Business Tax up to 0.45% of their gross receipts.
• Employers of those natural persons, who may be responsible for collecting the tax from employees and remitting it to the county, and could face penalties and costs for delinquent payments.

Key Provisions

• Section 3 authorizes the levy of a Jefferson County Occupational Business Tax on natural persons engaged in business activity in the County, and on those whose gross receipts from employment are subject to withholding, at a rate up to 0.45% of gross receipts minus certain withholdings, with a name for the tax: Jefferson County Occupational Business Tax.
• The tax is collected by designated county officials and the net proceeds go to the County General Fund for lawful public purposes; the county may impose penalties, interest, and collection costs for delinquent payments and may collect from employers.
• There is a provision that owners of pass‑through entities may be exempt from the tax if the entity’s gross receipts used to measure an entity license tax are passed through to the individual.
• The Governing Body may adopt rules and regulations to administer the tax, consistent with the act.
• The act repeals conflicting laws, includes a severability clause, and becomes effective immediately after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Jefferson County