HomeMy WebLinkAboutR85-891RESOLUTION NO. R85-891
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW,
TEXAS URGING THE UNITED STATES CONGRESS TO ENACT NO
I/EGISLATION TO TAX OR RESTRICT THE CONTINUED ISSUANCE OF
TAX-EXEMPT OBLIGATIONS BY STATE AND LOCAL GOVER~TS.
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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 inccme
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 exenption 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
immnnity which exe~pts from Federal income taxation interest earned ~n
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 their jurisdictions and the most
appropriate method of financing thx)se 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-exeapt 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, that the City Council of the City
of Plainview, Texas urges the United States Congress to enact no
legislation which would further .limit the ability of state and local
governments to issue tax-exem~ot 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.
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PASSED AND APPROVED this the 13th day of August, 1985.
WkLTER S. DODSON, City Clerk
E.V. RIDT.Rh~3BER, Mayor