HomeMy WebLinkAbout1985-R-06 - Opposition to Presidents Tax Proposal for Municipal BondsRESOLUTION NO. 1985-6
A RESOLUTION IN OPPOSITION TO THE PRESIDENT'S TAX
PROPOSAL 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 Stephenville, 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;
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
Stephenville, 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 Stephenville, Texas to provide vital public services
to such residents and will impose added federal bureaucratic
controls over the provisions of the such services; Now,
Therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
STEPHENVILLE:
That the City Council of Stephenville, 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 Stephenville, 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.
PASSED AND APPROVED this 3 day of September, 1985.
ATTEST:
cle �_ /� A- �,_ 2J 0
i2itY,secretary
David
lay n, Mayor
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