HomeMy WebLinkAboutRES 85-271 R E S O L U T I O N
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 in turn
lowering 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 severely 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 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
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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 BEAUMONT:
THAT the City of Beaumont, Texas urges the United States Congress
to enact no legislation which would further limit the ability of
state and local governments to issue tax-exempt obligations for
public purposes as defined by duly enacted State law, tax the
interest on said obligations, or eliminate further the ability of
financial institutions to deduct the costs of purchasing or
carrying such obligations.
PASSED BY THE CITY COUNCIL of the City of Beaumont this
the day of �a, - 1985.
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Mayor -
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