HomeMy WebLinkAboutR-1986-07
.
.
RESOLUTION NO.
86-7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS,
URGING THE UNITED STATES CONGRESS TO ENACT NO LEGISLATION TO TAX
OR RESTRICT THE CONTINUED ISSUANCE OF TAX-EXEMPT OBLIGATIONS OF
STATE AND LOCAL GOVERNMENT.
WHEREAS, the municipalities and counties of Texas
finance capital projects for various purposes defined as public by
State law through the issuance of obligations whose interest is
exempt from Federal income taxation; and
WHEREAS, the projects financed with said obligations
provide for the benefit of all area citizens and build roads,
schools, sewer lines,. public and charitable hospitals, and
low-income housing among other facilities; and
WHEREAS, the tax exemption of said obligations has
lowered the cost of borrowing for all states and localities the
cost of providing essential projects and services at the state and
local level; and
WHEREAS, the tax exemption on said obligations is not a
mere tax expenditure but stems from the Constitutional doctrine of
reciprocal immunity Which exempts from Federal income taxation
interest earned on state and local government obligations; and
WHEREAS, certain proposals considered by the United
States Congress would severly restrict the ability of states and
localities to issue such obligations for public purposes as
defined by duly enacted State statute and prohibit the use of
.
.
Resolution 86-7, Page 2
government and private enterprise partnerships' to provide
efficient and cost-effective delivery of services thereby
impairing the ability of state and local officials to determine
public priorities within their jurisdictions and the most
appropriate method of financing those priorities; and
WHEREAS, certain proposals being considered by the
United States Congress would subject the interest earned on said
obligations to Federal income taxation or eliminate the ability of
financial institutions to deduct the cost incurred in buying and
carrying tax-exempt obligations and would adversely affect the
continued efficient functioning of the entire market for state and
local government obligations thereby raising the cost of borrowing
for state and local government and consequently raising the cost
of government; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS:
SECTION 1. That the United States Congress is urged to enact no
legislation which would limit the ability of State and local
government to issue tax-exempt obligations for public purposes as
defined by duly enacted State law, tax the interest on said
obligations, or eliminate the ability of financial institutions to
deduct the costs of purchasing or carrying such obligations.
SECTION 2. This resolution shall take effect immediately from and
after its passage by the City Council of the City of La Porte.
-
a
~
fi
~
I -2-
~
I
I
.
.
Resolution 86-7, Page 3
INTRODUCED, READ and PASSED by the affirmative vote of
the City of La Porte, this the i'f~ day of ~
1986.
b~&~
NOR AN MALONE, M4YOR OF
THE CITY OF LA PORTE, TEXAS
ATTEST:
~~
CHERIE BLACK
CITY SECRETARY
CITY OF LA PORTE, TEXAS
APPROVED:
~eJd,
KNOX ASKINS
CITY ATTORNEY
CITY OF LA PORTE, TEXAS
-3-