HB745 Summary

• Authorizes counties that have filed Chapter 9 bankruptcy and received an Order for Relief to levy additional taxes including sales and use taxes (up to 1%), leasing taxes (up to 3%, or 1.125% for vehicles), privilege license taxes (up to 0.5%), and excise taxes on gasoline/motor fuel (up to $0.10 per gallon).

• Limits total estimated revenues from all additional taxes to 20 percent of the largest annual county expenditures reflected in budgets from the five fiscal years preceding the bankruptcy filing.

• Requires counties to hold a public hearing with at least 10 days' notice before levying any additional tax, with notice posted on the county website or in newspapers.

• Establishes a five-member financial advisory committee within 60 days of tax levy, with members appointed by the Governor, state legislators, and county governing body; committee dissolves upon bankruptcy dismissal or plan confirmation.

• Terminates authority to initiate new tax levies upon vacation of the Order for Relief, dismissal of the bankruptcy case, or confirmation of a debt adjustment plan; counties may continue collecting previously levied taxes without obligation to refund collected amounts.