HomeMy WebLinkAbout08-21-85-03 - Resolution - 08/21/1985RESOLUTION NO. 08-21-85-03
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 pro-
visions which would eliminate or limit the tax-exemption of
state and local government bonds including bonds issued by
the City of College Station, Texas; 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 invest-
ment 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, each of the President's proposed limitations on
tax-exempt municipal bonds would adversely affect the
City of College Station, Texas 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 section benefits directly or indirectly
from the use of more than one percent of a project financed
by such bonds; and,
WHEREAS, the President's municipal bond proposals will result
in an increase in costs which must be passed on to the
residents of College Station, Texas to provide vital public
services to such residents and will impose added federal
bureaucratic controls over the provisions of such
services;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF COLLEGE STATION: That the City Council of College
Station, 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 College Station, Texas; and,
BE IT 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.
Mayor
ATTEST
City Sec~, ry