Jones signals he'll move forward against occupational tax, mayors united in opposition
Nothing was resolved on Tuesday in a meeting between Sen. Andrew Jones, R-Centre, and the five Etowah County mayors whose municipalities assess occupational license fees on workers there.
In fact, positions seemed hardened following the 90-minute session in a Gadsden City Hall conference room.
Jones signaled that he’ll take action against such taxes for the second straight year in Alabama’s Legislature.
“Unfortunately, no deal was reached,” he said. “I repeatedly offered to kind of work in the middle, talk to these mayors and see how we might forge a compromise.
“But it seems like it was an all-or-nothing approach on their part,” Jones said, “so we’re going to continue to move forward and work through the legislative process. I hope they will reconsider and come up with an offer."
Those who oppose Jones are looking to a town hall meeting at 5 p.m. Thursday at The Venue at Coosa Landing to build support against what mayors say would be a devastating blow to their cities’ finances.
Gadsden Mayor Craig Ford said, “We’re bringing a bond attorney in to explain what it (removing occupational tax) does to your bond rating, how they can call bonds (the issuer redeems them prior to their maturity date).
“We’re also bringing in an economist to be able to explain it to us in simple terms,” he said, “and will have department heads like the fire chief and police chief.”
The furor started after the Alabama Daily News website reported last week that Jones would try again to pass legislation phasing out the occupational taxes in place in 25 municipalities in the state. In Etowah County, that includes Gadsden, Attalla, Glencoe, Rainbow City and Southside, all of which charge 2%.
The website quoted Jones as saying such taxes impede economic development. In a later interview with The Times, he said he had a philosophical aversion to “charging people to work,” noted that the Etowah County municipalities have five of the six highest occupational license fee rates in the state (Tuskegee is the only other city at 2%) and expressed concerns about the application of the tax to those who work from home, to first responders and to severance pay.
Jones also said he’s not drawn up an actual bill yet. His attempt last year, SB44, would’ve reduced occupational taxes by 1/10 of a percent annually until they were completely eliminated in a municipality. That bill was “indefinitely postponed,” according to legislative records.
Gadsden’s occupational tax has been in place for more than 60 years, and accounts for roughly 30% of the city’s annual General Fund revenues. Ford in a news release following Jones’ comments painted a dire picture of drastic cuts in services and “big plans” being halted.
Mayors of the four other cities that would be affected — Attalla’s Larry Means, Glencoe’s Chris Hare, Rainbow City’s Joe Taylor and Southside’s Dana Snyder — attended Tuesday’s meeting, and Ford said the quintet was united in opposition to Jones’ proposal.
“You cannot take revenue from a city,” he said. “We’re confused on how a state senator wants to take moneys from the operating budget of a city, how we want to run government.
“We’re looking to our state senator to help us find additional revenues and grants,” Ford said, adding that Jones has a “backward philosophy” between himself and city government in the way he operates.
He said Jones "enjoyed creating a problem so he can attempt to create a solution."
The mayors received support at Tuesday’s governmental meetings. Gadsden City Council member Jason Wilson thanked Ford for “stepping out front and taking it on the chin, and really picking up the flag and running with these conversations” about something that could potentially have “a catastrophic impact” on the city.
Council President Kent Back said, “We inherited this structure of city government,” noting how long the tax has been in place.
“It’s hard to get that toothpaste back in the tube once that happens,” he said. “If I were to create a new city, would I create the funding structure like it is? Probably not. But it is what it is, and we have to work with what we have inherited.”
Several members of the Etowah County Commission indicated they would support a resolution backing the mayors.
This article originally appeared on The Gadsden Times: Etowah mayors stand firm against end to occupational tax
