HB653 Alabama 2012 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2012

Title

Jefferson County levy of occupational tax

Summary

Jefferson County would be allowed to impose an occupational tax on certain individuals and business activity in the county, with a gross-receipts rate capped at 0.45% and specified revenue distribution.

What This Bill Does

If enacted, the County Commission could levy and collect a license tax on natural persons engaged in business activity in Jefferson County. For employment-related activity, the tax would be up to 0.45% of gross receipts derived from employment, measured after subtracting health insurance premiums and retirement contributions, and collected by employers with penalties for late payments. Revenue would be split with 20% going to the University of Alabama at Birmingham for research or construction, and the rest to the County General Fund for public use, with rules established to administer the tax and protections for certain pass-through income arrangements.

Who It Affects

• Natural persons engaged in business activity in Jefferson County would be taxed under the new Jefferson County Occupational Business Tax, subject to certain exemptions and pass-through rules.
• Employers in Jefferson County would collect the tax from their workers and remit it to the County, and could face penalties, interest, and collection costs for delinquent payments; revenue would benefit UAB and the County General Fund.

Key Provisions

• Authorizes the Jefferson County Governing Body to levy, impose, and collect a license or privilege tax on natural persons engaged in business activity in the County, with specified exemptions.
• Imposes a Jefferson County Occupational Business Tax on gross receipts from employment up to 0.45% (0.0045) of such receipts, net of amounts withheld for health insurance premiums and retirement contributions, collected from employers with penalties and costs of collection.
• Distributes tax proceeds: 20% to the University of Alabama at Birmingham for research or construction, remainder to the County General Fund for lawful public purposes.
• Provides rules for administration, severability, and an immediate effective date following Governor's approval; repeals conflicting laws.

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