SB567 Summary

• Authorizes counties that have filed Chapter 9 bankruptcy petitions and received orders for relief to levy additional sales and use taxes (up to 1%) or privilege license taxes (up to 0.5%) on business gross receipts.

• Limits additional tax revenues to 20% of the largest annual expenditure budget adopted in the three fiscal years preceding the bankruptcy petition filing.

• Requires public hearings with at least ten days' notice before implementing any additional taxes, with notice posted on county websites or in newspapers and at courthouses.

• Establishes a five-member financial advisory committee appointed by state officials to review county financial operations and make recommendations, with members dissolved upon bankruptcy dismissal, debt plan confirmation, or county discharge.

• Terminates the authority to initiate new tax levies upon vacation of relief order, dismissal of bankruptcy case, or confirmation of debt adjustment plan, but allows counties to continue collecting previously levied taxes without obligation to refund amounts collected.