Top Alabama court rules county tax unconstitutional

Reuters News
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Posted: Mar 21, 2011 3:41 PM
Top Alabama court rules county tax unconstitutional

BIRMINGHAM, Alabama (Reuters) - Alabama's Supreme Court dealt a blow to debt-ridden Jefferson County on Wednesday, ruling that its occupational tax is unconstitutional.

The county is threatened with bankruptcy over a $3.2 billion sewer bond debt and the tax was a key source of operating revenue. Without it, the county is pushed closer to bankruptcy, analysts said.

(Reporting by Melinda Dickinson, editing by Matthew Bigg and)