Local News - Aug. 20, 2002

By Dave Hendrick
Montgomery Advertiser

Supporters and opponents of a Montgomery County occupational tax leave the Monday meeting of the Montgomery County Commission after the commission approved the tax.

-- Todd Van Emst, Advertiser

Montgomery County commissioners voted Monday morning to impose a 1.5 percent occupational tax on almost all who draw a salary in the county.

The council voted 3-2 to assess the tax, which will provide an additional $33 million per year for Montgomery Public Schools.

The tax takes effect immediately, which allowed the school system to immediately seek a court opinion on the levy’s legality. But collection probably will not begin until next spring or summer after the Alabama Supreme Court determines the tax’s validity.

“We are at a crossroads, and if Montgomery is going to survive as a viable county, this tax is necessary,” said Commission Chairman Bill Joseph, who voted for the tax. Joining him were Commissioners Elton Dean of District 2 and Jiles Williams of District 4.

“There ought to be a better way to resolve this problem than taxing the working people,” said District 5 Commissioner Lynn Gowan, who voted against the tax. District 3 Commissioner Sam Wingard also voted against the tax.

The occupational tax is a major part of a comprehensive tax plan unveiled July 11 that supporters say will increase school funding and provide sufficient funding for essential government services and needed improvements.

Another part of the tax package calls for the city to increase the 8-cent sales tax by 1 cent. The City Council is expected to vote on that proposal at its 7 p.m. meeting today.

Monday morning, the commission meeting room was overflowing 20 minutes before the commission was called into session.

Many of the protesters and the tax supporters had attended the meeting when the tax was first proposed two weeks ago.

“I know it’s unconstitutional,” Montgomery resident Bill Givens said. “How many times have we voted a tax down and they come back?”

Another tax opponent, Suzelle Josey, submitted petitions with the names of about 3,000 opponents of the tax.

“We’re going to file a lawsuit,” said Josey, representing Alabama Center for Constitutional Law and Government. “We’re checking to find out if this is unconstitutional, to tax people without representation.”

Action already has begun to get the tax validated by the courts.

The county board of education filed a “validation complaint” in Montgomery County Circuit Court at 10:33 a.m. Monday, and Circuit Judge Johnny Hardwick set a Sept. 13 deadline for people to intervene in the case.

The validation complaint seeks to determine through the court if the law is legal and binding before the school board issues the $100 million worth of bonds that its members approved earlier Monday contingent on the commission’s vote and the court’s ruling, County Attorney Tommy Gallion said.

Under the ordinance passed Monday, the tax will be imposed on any employee and any owner who “engages in or follows any trade, occupation or profession.” The only exemptions would be for transients, such as the students in the U.S. Air Force Air War College, Gallion said.

The law would exempt $5,000 in income from the tax.

Residents and officials outside Montgomery County have objected to helping fund schools in a county where they have no local representation.

Others say taxes already are too high and the school system and local government are inefficient and unaccountable.

“It represents for me a significant amount on income,” said Ophelia Walker of Montgomery. While money is important for quality education, she said, “I think there should be a better way to come up with the money. This vote should have come to the people.”

Those supporting the tax applauded Joseph, Dean and Williams.

“I thank you for your courage,” Karen Cagle of Montgomery said. “And I thank you for what you are doing.”

Buddy Bell, minister of Landmark Church of Christ in Montgomery, told the commissioners he wanted “to encourage you to have courage. Do what is best for our children. You’ve got a lot of support from a lot of people.”

Ken Upchurch, who presented the comprehensive tax plan to the City Council and County Commission six weeks ago, said the benefactors will be children who will lead the community.

Upchurch said tax opponents’ arguments relied on “rhetoric, emotion and gimmickry.”

No opponent, however, came up with a solution to financial problems facing education and government, Upchurch said.

“You can make it this year” despite school funding problems, he told the commission. “But next year, you will have a train wreck.”

“We’re very proud of the county commissioners,” Montgomery Area Chamber of Commerce President Randy George said after the vote. “No one likes to vote for more taxes, but we needed to move forward. We would have liked to have found another way, but the situation is so difficult.”

“I’m here about the people,” Williams said before voting for the tax. “I will not be threatened by those who want to vote me out.”

Gowan, though, said he has “come out against this from the very beginning.”

He said he understands the argument against taxation without representation and also predicted the tax would hurt the local economy.

“People are going to move out of here,” Gowan said.

Dean explained his vote: “My platform, my main priority, is education. I believe in what the school board is doing.”

The tax is expected to bring in about $45 million per year. That will allow the county to keep the $12 million or so it now gives the schools from its general fund annually. The net gain for schools will be about $33 million a year.

The county has run into financial problems in the past two years, partly because of sagging sales taxes. Its 2002 budget was lower than its 2001 budget, and the county had to use money from its reserve fund.

Joseph said the county, which has had no permanent tax increase in 25 to 30 years, needs the money for major expenses.

All or part of the tax, he said, would be removed if residents later vote to increase property taxes. How much would be removed depends on the size of the property tax, he said.

Joseph said the county needs:

The Montgomery County Commission approves a 1.5 percent occupational tax Monday in Montgomery.

-- Todd Van Emst, Advertiser

About $10 million to pay its share of the incentives for Hyundai Motor Co. to build a $1 billion auto assembly plant in south Montgomery.

About $60 million to $80 million for a new jail to replace the existing, overcrowded detention facility. The jail was designed for 305 inmates but has not had fewer than 400 in the past eight years.

More county government offices also are needed.

“I have no alternative but to vote for this tax,” Joseph said.

“Everybody else votes his conscience like I voted mine,” Gowan said. “I regret my side did not prevail.”