§ 45-37-244.02 — Jefferson County Entity Business License Tax

Alabama § 45-37-244.02

• Jurisdiction: Alabama
• Title 45: Local Laws
• Ch. 37: Jefferson County
• Art. 24: Taxation
• Part 5: Tax, Business, Privilege, License

Text

(a) This section shall apply only to Jefferson County.
(b) As used in this section, the following words and terms shall have the meanings ascribed to them:
(1) BUSINESS ACTIVITY. The carrying on or practice of any business, vocation, occupation, work, calling, or profession for profit.
(2) BUSINESS ENTITY. A person engaged in one or more business activities, other than an individual.
(3) COUNTY. Jefferson County.
(4) GOVERNING BODY. The Jefferson County Commission.
(5) INDIVIDUAL. A natural person other than a sole proprietor.
(6) PERSON. Any corporation, partnership, company, association, unincorporated organization, or other entity formed to engage in business activity. The term includes an individual engaged in business activity as a sole proprietorship.
(c)(1) In addition to all state license taxes levied under Article 2, commencing with Section 40-12-40, Chapter 12, Title 40, as amended, the governing body of the county is hereby authorized to levy, impose, and collect a license or privilege tax, to be known as the Jefferson County Entity Business License Tax, upon any person other than an individual for engaging in business activity conducted in the county measured by the gross receipts from business activity conducted in the county in respect of which gross receipts the person is not otherwise required by law to pay a state tax pursuant to Section 40-16-4, 40-21-50, 40-21-52, 40-21-53, 40-21-56, or 40-21-60 as amended. Provided further, that a person who is liable for the tax authorized by this section and who is also required to purchase a state license or licenses pursuant to Article 2, commencing with Section 40-12-40, Chapter 12, Title 40, as amended, may in the determination for each county fiscal year or other applicable period of the amount of such person’s liability for the tax, at its option either deduct from its gross receipts from business activity conducted in the county one-half of the amount of such receipts derived from the sale of merchandise or services by such person from business activity conducted in the county or deduct from the amount of the license tax due under this section one-half of the amount or amounts paid by such person for the state licenses, excluding fees, interest, and penalties, issued under Article 2, commencing with Section 40–12–40, Chapter 12, Title 40, as amended. With the exception of rental income, a person who is subject to the tax authorized by this section shall be allowed to deduct from its gross receipts any interest, dividends, and other passive income otherwise included as gross receipts.
(2) The Jefferson County Entity Business License Tax may be levied for each county fiscal year beginning with the fiscal year that commences on October 1, 2011, or other applicable period at such rate or rates as shall be determined by the governing body from time to time and in respect of the various types of businesses conducted in the county as the governing body may by ordinance determine appropriate. In no event shall the Jefferson County Entity Business License Tax payable by any person subject thereto exceed for any period for which the tax is levied 1/40th of one percent of the annual gross receipts derived from the business activity conducted in the county of such person for that period and subject to the tax herein authorized following any gross receipts deduction permitted pursuant to subdivision (1). Notwithstanding the deductions or credits permitted under subdivision (1), every person subject to the Jefferson County Entity Business License Tax shall pay at least a minimum tax of twenty-five dollars ($25) per annum initially, and no more tax than fifteen thousand dollars ($15,000) per annum initially. The maximum tax shall not restrict the ability of the governing body to collect penalties, interest, and fines which, when added to the tax due, exceed the maximum annual amount for any past due Jefferson County Entity Business License Tax. The governing body is authorized to provide by ordinance for an issuance fee, initially set at twenty-five dollars ($25), which may be reasonably increased or decreased by the governing body from time to time, and the levy and collection of the Jefferson County Entity Business License Tax from the persons subject thereto and for the imposition of penalties, interest, and fines on delinquent payments due and unpaid and for costs of collection thereof.
(3) Beginning in county fiscal year 2016, and every five years thereafter, the governing body may increase either or both the minimum or the maximum tax amount provided for under this section by an amount not to exceed five percent.
(4) Before the governing body may approve the ordinance referenced in subdivision (2), the governing body shall post the text of the proposed ordinance on the county’s public website for a period of not less than 15 days.
(5) When a person is engaged in more than one business for one or more of which a state tax is required to be paid pursuant to Section 40-16-4, 40-21-50, 40-21-52, 40-21-53, 40-21-56, or 40-21-60, as amended, but for one or more of which no state tax is required to be paid pursuant to Section 40-16-4, 40-21-50, 40-21-52, 40-21-53, 40-21-56, or 40-21-60, as amended, the governing body shall have the authority to levy hereunder in respect of such business the Jefferson County Entity Business License Tax measured by the gross receipts of such business or such businesses respecting which such person is not required to pay any state tax. In the absence of a subsequent act of the Legislature specifically repealing this sentence, the governing body may impose no new business license other than the Jefferson County Entity Business License Tax authorized by this section. In no event shall the same gross receipts for the same period be utilized as the measure of tax for two or more licenses under the Jefferson County Entity Business License Tax and any other business license or privilege tax then being levied by the county for the same period.
(d) The tax hereby authorized to be levied shall be paid to that officer or employee of the county chargeable with the duty of collecting license or privilege taxes payable to the county, and the proceeds thereof, net of any costs of collection, shall be deposited in the county’s general fund and may be used and appropriated therefrom by the governing body for the lawful purposes and objects of expenditure for which such fund has been established.
(e) This section may not be construed as allowing the governing body to levy a privilege tax or an occupational tax on the compensation received by an employee from any employer with a place of employment located within an incorporated or unincorporated area of the county.
(f) If any provision of this section shall be finally determined by a court of competent jurisdiction to be invalid, such invalidity shall not affect any other provisions of this section, which shall be given full force and effect as completely as if the invalid provision had not been included herein.
(g) In addition to such other legal authority as it may have with respect thereto, the governing body is authorized to adopt and promulgate such rules and regulations consistent herewith and with any ordinance providing for the levy and collection of the tax herein authorized as shall be necessary and appropriate in the circumstances to the efficient administration thereof.

Legislative History

(Act 2011-662, p. 1768, §§1-7.)