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Ala. Supreme Court Rules In Jeffco Tax Case

Birmingham, AL – The Alabama Supreme Court has issued a ruling in a long-running dispute over Jefferson County's occupational tax, but lawyers disagree over its meaning.

The justices ruled Friday that a lower court was wrong when it ordered the county to pay interest on money that was collected under the occupational tax. County attorney Matt Lembke said that means Jefferson County will get a refund of some $14 million.

The Supreme Court also ruled that another $37 million in an escrow account can't be returned to the county. Lembke says the county can recollect the same amount of money under a new occupational tax. But taxpayer lawyer Jim McFerrin says the $37 million can be refunded to taxpayers.

A judge must resolve the dispute.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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