HB745 Alabama 2012 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2012

Title

Counties, certain counties who have filed Chapter 9 bankruptcy may levy and collect certain taxes, financial advisory committee established

Summary

HB745 would let certain Alabama counties in Chapter 9 bankruptcy levy new taxes (sales/use, leasing, privilege license, and excise) under strict limits, with required public hearings and a financial advisory committee, and would end such powers once bankruptcy ends.

What This Bill Does

The bill authorizes eligible counties to levy and collect additional taxes beyond current law for a defined period. It requires public hearings and notice before any new tax is imposed, and caps the first-year revenue from these taxes at 20% of the county's largest annual expenditures from the five budgets before filing. It creates a five-member financial advisory committee to review the county's finances and make improvement recommendations, with members appointed by the governor, the county's Senate and House delegations, and the county itself, serving without compensation. It restricts how tax proceeds can be used, sets termination triggers tied to bankruptcy outcomes, and allows counties to continue collecting taxes already levied after termination; the act is severable and becomes effective immediately upon passage.

Who It Affects

• Counties that have filed for or are seeking Chapter 9 bankruptcy relief, who would gain authority to levy additional taxes under the act subject to caps and oversight.
• County residents, business owners, and local taxpayers who could be affected by new taxes and the associated notice, hearings, and reporting requirements.

Key Provisions

• Authorizes counties in Chapter 9 relief to levy and collect additional taxes (sales and use, leasing, privilege license, and excise) beyond existing authority, for specified periods.
• Requires a public hearing and public notice prior to the levy and collection of any additional tax.
• First-year revenue from these taxes, when added to other new taxes, cannot exceed 20% of the county's largest annual expenditures from the five preceding budgets.
• Creates a financial advisory committee of five qualified members (appointed by the governor, the county's Senate/House delegations, and the county) to review finances and advise on improvements; committee serves without compensation and dissolves after bankruptcy ends under defined conditions.
• Prohibits using tax proceeds to pay certain non-recourse or restricted-debt obligations; includes termination triggers when bankruptcy ends and allows continued collection of taxes already levied after termination.
• Provisions are severable; the act becomes effective immediately upon governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties