HomeMy WebLinkAboutR-1985-12
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RESOLUTION NO. 85-l2
RESOLUTION IN OPPOSITION TO
THE PRESIDENT'S TAX PROPOSALS
FOR MUNICIPAL BONDS
WHEREAS, on May 29, 1985, President Reagan submitted his
tax
proposal
for "fairness, growth and simplicity" to
Congress; and
WHEREAS, included in the President's tax proposals are
provisions which would eliminate or limit the tax-exemption of
state and local government bonds including bonds issued by the
City of La Porte; and
WHEREAS, the President's proposals would deny tax-exempt
status to bonds where the private sector benefits directly or
indirectly from the use of more than one percent of the
proceeds of the bond issue; would eliminate all advance
refundings of tax-exempt bonds; would restrict the investment
of bond proceeds; would require that certain earnings from the
investment of bond proceeds be paid to the U. S. Treasury
Department; would require that an Internal Revenue Service
information report be filed for every bond issue; and would
impose additional taxes on banks that purchase tax-exempt
bonds; and
WHEREAS, e~chlof the President's proposed limitations on
tax-exempt municipal bonds would adversely affect the City of
La Porte by increasing borrowing costs, requiring continuous
administrative review of bond issues and the use made of
facilities financed with such issues, requiring filings with
the Internal Revenue Service and review by the Internal
Revenue Service of each bond issue, and jeopardizing the
tax-exemption on bonds where the private sector benefits
directly or indirectly from the use of more than one percent
of a project financed by such bonds; and
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Resolution 85-12, Page 2
WHEREAS, the President's municipal bond proposals will
result in an increase in costs which must be passed on to the
residents of La Porte, Texas, will reduce the ability of City
of La Porte to provide vital public services to such residents
and will impose added federal bureaucratic controls over the
provision of such services;
BE IT, THEREFORE, RESOLVED, BY THE CITY COUNCIL OF THE
CITY OF LA PORTE:
Section 1. That the City Council of La Porte, Texas goes
on record as opposing the limitations and restrictions on
municipal bonds proposed by the President, which, if enacted
into law would adversely affect all tax-exempt municipal
bonds, including bonds issued by the City of La Porte; and
BE IF FURTHER RESOLVED, that copies of this Resolution
shall be sent to members of Congress urging them to oppose the
provisions of the President's tax proposals which would impose
new limitations on the issuers and purchasers of municipal
bonds'.
Section 2. That this Resolution shall be effective from
and after its adoption.
Passed and approved on the ~ day of August, 1985.
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Resolution 85-l2, Page 3
?&M'l~~"~
Ma or, City of La 6rte
ATTEST:
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Ci ty _>~_e9-re,tar.y, Ci ty of
La~~ Porte :'
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! (SEAL)
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City Attorney, City of
La Porte