HomeMy WebLinkAbout11-14-85-17 - Resolution - 11/14/1985RESOLUTION NO. 11-14-85-17
A RESOLUTION IN OPPOSITION TO TAX PROPOSALS RELATING TO
MUNICIPAL BONDS
WHEREAS, the United States Congress is currently con-
sidering tax reform proposals including proposals re-
lating to tax-exempt bonds; and
WHEREAS, included in the proposals under consideration
are provisions which would eliminate or limit the tax -
exemption of state and local government bonds issued by
the City of College Station, Texas; and
WHEREAS, these proposals would deny tax-exempt status
to bonds where the private sector benefits directly or
indirectly from the use of a portion 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; would impose additional taxes on banks that
purchase tax-exempt bonds; and would subject the hold-
ers of tax-exempt bonds to minimum tax liability; and
WHEREAS, the proposed limitations on tax-exempt muni-
cipal bonds would adversely affect the City of College
Station by increasing borrowing costs, requiring con-
tinuous administrative review of bond issues and the
use made of facilities financed with such issues, re-
quiring filings with the Internal Revenue Service and
review by the Internal Revenue Service of each bond is-
sue, and jeopardizing the tax exemption on bonds where
the private sector benefits directly or indirectly from
the use of a project financed by such bonds; and
WHEREAS, the municipal bond proposals will result in an
increase in costs- which must be passed on to the con-
sumer, will reduce the ability of municipalities and
authorities to provide vital public services and will
impose added federal bureaucratic controls over the
provision of such services;
BE IT, THEREFORE, RESOLVED, that the City Council of
the City of College Station, Texas goes on record as
opposing the limitations and restrictions on municipal
H bonds under consideration by the United States Con-
gress, which, if enacted into law would adversely af-
fect all tax-exempt municipal bonds, including bonds
issued by the City of College Station; and
BE IT FURTHER RESOLVED, that copies of this Resolution
shall be sent to members of Congress urging them to op-
pose the provisions of the tax proposals under consid-
eration by the issuers and purchasers of municipal
bonds.
PASSED AND APPROVED THIS THE 14th DAY OF November,
1985.
APPROV
Gary Ha er, Mayor
ATTES
Dian J nes City Secretary