AGO 1996-137.

• Case Date: February 16, 1996
• Court: Alabama

Alabama Attorney General Opinions 1996. AGO 1996-137. 1996-137February 16, 1996Honorable Edward A. Maull Member, House of Representatives District No. 67 2002 4th Avenue Selma, AL 36703 Ad Valorem Taxes - Bankruptcy - Counties - Sales Tax - ReferendumThe Alabama Constitution does not provide for counties going bankrupt. Whether or not a county can go bankrupt is a speculative question, and the Attorney General cannot render an opinion.A referendum can be held to levy a county sales tax. The Legislature can authorize an increase in the sales tax rate levied in Dallas County in the same manner that Act No. 71-1693 authorized the current sales and use tax in the county.Dear Representative Maull: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTION I What happens if a county goes bankrupt? Will the state take over? Is there a precedent for such action? I am aware that the state school superintendent can take over insolvent school systems. FACTS AND ANALYSIS The Alabama Constitution of 1901, Art. XII, Section 224, as amended by Amendment No. 342, provides as follows: "No county shall become indebted in an amount including present indebtedness, greater than five percentum of the assessed value of the property therein. Nothing herein contained shall prevent any county from issuing bonds, or other obligations, to fund or refund any indebtedness now existing or authorized by existing laws to be created." The above-mentioned provision may not fully address your question. However, as the question is speculative, the Attorney General cannot render an opinion. Section 36-15-1, Code of Alabama 1975, sets out the duties of the Attorney General and provides as follows in _ 36-15-1(d): "An officer or governing body shall not submit moot, private, or personal questions in which the state, county, or public is not materially or primarily interested to the Attorney General, and any officer shall submit, with request for an opinion, a certificate setting forth the facts showing the nature and character of the question which makes the advice sought necessary to present performance of some official act that the officer must immediately perform." CONCLUSION The...