Occupational Tax - p7

1020755; 1020758; 1020763; 1020764; 1020768; 1020773

III. Analysis


The taxpayers assert several arguments against the imposition of the occupational tax, including, among others,

(1) that Ala. Code 1975, § 40-12--4(a), does not authorize the Commission to impose the occupational tax because the occupational tax is not a franchise, excise, or privilege- license tax and, as it applies to most taxpayers, is not levied with respect to "privileges or receipts from privileges"; (2) that § 40-J.2--4(b) prohibits the imposition of the occupational tax both because it is a tax 'measured by gross proceeds" and because it is not "levied uniformly"; (3) that the occupational tax violates the Due Process Clause and the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution; and (4) that the occupational tax cannot be legally imposed on military personnel or lawyers. However, we need not address each of these arguments, because of our holding that the occupational tax violates § 40-12- 4 (b)


the taxing authority and in favor of the taxpayer.") (emphasis added).