Jefferson County Pushing Tax Increase To Address Damage of Muni-Bond Scandal

With 25% of the work force laid off and the county bankrupt from the muni-bond scandal government is doing what it does best, taxing people to as a way to cover for their mistakes.

Aug. 12 (Bloomberg) -- Alabama’s House of Representatives approved an occupational tax for virtually broke Jefferson County by a 17-15 vote during a special session called by Governor Bob Riley.

The bill, which moves to the Senate, authorizes a 0.45 percent levy on businesses in the county and a referendum on the tax in 2012. If voters reject the levy, it will be phased out by 2016.

Jefferson County, with more than 600,000 residents, put more than 1,000 employees on leave this month after a state judge ruled its occupational tax illegal. The tax generated about $75 million annually. The county, which includes Birmingham, has struggled to avoid the biggest U.S. municipal bankruptcy because of surging debt costs on $3 billion of bonds issued to refinance its sewer system.

Lawmakers also voted 25-1 to establish a comptroller and county executive for Jefferson County. The comptroller, to be elected by a four-fifths majority of the county commission, would approve spending, and monitor finances and contracts. The comptroller would serve a six year term and assume office before Dec. 31, 2009. The county manager would be hired by April 1, 2011.

The legislation authorizing a financial monitor also requires the comptroller to post a quarterly report on the county’s Web site, including the scope and value of contracts, and the names of vendors.

More than 20 contractors or former officials have been indicted or convicted of federal crimes in the construction and financing of the sewer system.

With evidence against Langford mounting his trial can't come soon enough. By the way i. case you never heard of it:

What is the business and occupation (B&O) tax?

The state B&O tax is a gross receipts tax. It is measured on the value of products, gross proceeds of sale, or gross income of the business.

In other news the LapPiere will be sentenced in November as part of his deal:

Lobbyist Al LaPierre, who is expected to testify at Birmingham Mayor Larry Langford's upcoming bribery trial, will be sentenced Nov. 19, federal Judge Scott Coogler decided today.

Federal prosecutors are expected to recommend a four-year sentence for LaPierre if they deem he provided substantial assistance for Langford's trial set to begin Aug. 31. LaPierre last month pleaded guilty to conspiracy and filing a false tax return.

The plea deal requires LaPierre to forfeit $371,932, the amount paid to him by Montgomery investment banker Bill Blount, Langford's co-defendant. LaPierre is to pay all taxes due for 2003 to 2006. LaPierre is also to assist the FBI, IRS and any other agency as required.Prosecutors contend that Blount gave Langford -- with LaPierre as intermediary -- $236,000 in cash, jewelry and clothing.