Scottsboro Mayor Melton Potter announces the recent Attorney Generals Opinion about Privilege Taxes. (photo by G. Morgan)
State of Alabama Department of Public Examiners Seal. Fair Use Rights for non-profit news reporting.
From: STATE OF ALABAMA OFFICE OF THE ATTORNEY GENERAL
LUTHER STRANGE
July 26, 2016
To:Honorable Ronald L. Jones, Chief Examiner.Department of Examiners of Public Accounts
Post Office Box 302251, Montgomery, Alabama 36130-2251
Subject: Privilege Tax — Corporate Shares Tax Funds — County Commissions — Counties
The county and all tax-recipient agencies or funds that previously received a portion of the old shares tax, pursuant to the Corporate Shares Tax provision, are entitled to receive tax proceeds pursuant to the Alabama Business Privilege and Corporate Shares Tax provision as set forth in section 40-14A-26(b) of the Code of Alabama.
Dear Mr. Jones: This Attorney General is issued in response to your request.
QUESTION: Should all agencies or funds that received a portion of the old shares tax proceeds in fiscal year 1 999 receive a portion of the proceeds from the Alabama Business Privilege and Corporate Shares Tax?
FACTS AND ANALYSIS
In your letter of request, you seek a reconsideration of the opinion issued to Honorable John F. Porter, Ill, Attorney, Jackson County Commission, dated January 19, 2016, A.G. No. 2016-020. In Porter, this Office stated that, without statutory authority, the ultimate use and distribution of the Alabama Privilege and Corporate Shares Tax received by Jackson County would be left to the discretion of the Jackson County Commission.
CONCLUSION
The county and all tax-recipient agencies or funds that previously received a portion of the old shares tax, pursuant to the Corporate Shares Tax provision, are entitled to receive tax proceeds pursuant to the Alabama Business Privilege and Corporate Shares Tax provision as set forth in section 40-14A-26(b) of the Code of Alabama.
Mayor Melton Potter stated, "The county owes us 3 years back taxes." The back taxes could amount to $420,000. This places the financially strapped Jackson County government in a serious financial hole. It appears this case may be headed to the courts for a resolution. (photo by G. Morgan)
