Tax Lawyers in Birmingham
The government of Birmingham, Alabama collects taxes from its residents in order to pay for general public services, like police and fire departments, libraries, hospitals, and public transit.
In Birmingham, Alabama, taxes can come from numerous different sources. However, they are always collected at a rate that has been set by the law. Taxes sometimes come in the form of flat fees, but most of them are collected as a percentage of some larger amount of money, such as the value of a piece of property, or income.
Paying your taxes in Birmingham is not optional. It is obligated by law. If you don't pay your taxes, you could face stiff fines, and even jail time.
Sources of Tax Dollars in Birmingham, Alabama
Numerous different things can be taxed in Birmingham, Alabama. This is meant to ensure that there is a wide range of sources of tax revenue, and that the government does not have to rely too heavily on any one revenue stream that could dry up. For instance, local governments collect revenue from sales taxes, licensing fees, as bridge tolls, among several other things.
Sales Tax: The sales tax imposed by Birmingham is on top of the sales tax collected by the government of . Sales taxes are typically fairly small - about 5-7% at the state level, plus a city sales tax that's typically one percent or less.
Licensing Fees: The government of Birmingham issues licenses for engaging in a wide number of different activities. Most frequently, they issue business licenses, which business owners must obtain before operating any type of business in city limit. The most important of this process is usually paying a fee. While these taxes are called "fees," instead of "taxes," they are functionally identical, and serve the same purpose (namely, raising revenue).
Bridge/Road Tolls: Most large cities in the U.S. charge fees, or tolls, on automobiles entering the city via public bridges and highways. This money is, more or less, a tax on everybody who drives into Birmingham via public infrastructure. This means that everyone who visits is obligated to make at least a small contribution to the government services they'll be using while there.
How Can a Birmingham, Alabama Tax Attorney Help?
In Birmingham, Alabama, many different laws and regulations govern taxes, making the theoretically simple task of determining one's tax liability pretty convoluted. On top of that, there are many different breaks and exemptions that apply to specific types of groups and individuals, further complicating things.
Thus, if you have any questions or problems with your taxes in Birmingham, Alabama, it's very important to speak with a knowledgeable Birmingham tax law specialist.