HomeMy WebLinkAboutR85-937182
Resolution No. R85-937
A RESOLUTION OF THE CITY CYY3NCII. OF PLAINVIEW, TEXAS
IN OPPOSITION TO TAX PROPOSALS RELATING TO 5~JNICIPAL BONDS
WHEREAS, the United States Congress is currently considering tax refom
proposals including porposals relating to tax-exenl0t 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 including bonds issued by the City of Plainview, Texas; and
WHEREAS, these proposals would deny tax~t 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 investm~at 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 holders
of tax-exempt bonds to minimum tax liability; and
WHEREAS., the proposed limitations on tax-exempt municipal bonds would
adversely affect the City of Plainview, Texas by increasing borrowing costs,
requiring continuous 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 Interal Revenue Service of each bond issue,
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 consumer, 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, RESOLVt~, that the City Council of Plainview, Texas
goes on record as opposing the limitations and restrictions on rmmicipal
bonds under consideration by the United States Congress, which, if enacted
into law would adversely affect all tax-exempt municipal bonds, including
bonds issued by the City of Plainview, Texas; and
BE IT FURRIqER RESOLVED, that copies of this Resolution shall be sent to
members of Congress urging them to oppose the provisions of the tax proposals
under consideration by the United States Congress which would impose new
limitations on the issuers and purchasers of ~cipal bonds.
PASSED AND APPROVED this 12th day of November, 1~85.;