HomeMy WebLinkAboutResolution No. 2317 RESOLUTION NO. 2317
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
DOWNEY OPPOSING LEGISLATION WHICH WOULD REMOVE
TAX EXEMPT STATUS FROM MUNICIPAL BONDS AND
ENDORSING THE SENATE FINANCE COMMITTEEtS ACTION
IN DELETING SUCH LEGISLATION.
WHEREAS, it is essential that any government have the power to tax
and to borrow to support necessary services; and
WHEREAS, by altering the tax exempt status of local bond issues, the
federal__ government may be challenging the reciprocal tax immunity and the
autonomy of Local government; and
WHEREAS, passage of any measures to remove the tax exempt status of
local bond interest may have negative result of making municipal bonds
less attractive to potential purchasers, thus raising the cost of debt
service; and
WHEREAS, measures intended to cut out "tax loopholes" may result in
higher tax rates for our citizens in order to provide revenue for public
facilities that once was provided from the sale of tax exempt municipal
bonds; and
WHEREAS, the "Tax Reform Act of 1969" includes a proposal to enact
a minimum income tax, and another proposal to set a maximum amount which,
if they include interest paid on State and local government obligations,
would pose a serious constitutional issue:
WHEREAS, the Senate Finance Committee has deleted all provisions
either eliminating or limiting the tax exemption on municipal bonds from
the Tax Reform Act of 1969.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES RESOLVE
AS FOLLOWS:
SECTION 1. The City Council of the City of Downey opposes federal
legislation that might alter the tax exempt status of interest on local
government bond issues.
SECTION 2. That this City Council commends the Senate Finance
Committee for its action in deleting provisions limiting tax exemption on
municipal bonds from the Tax Reform Act of 1969.
SECTION 3. That the Congress of the United States be petitioned to
refrain from enacting legislation which would endangerthe market for
State and local securities and which would make the performance of the
responsibilities of local government more difficult and more costly.
SECTION 4, The City Clerk shall certify to the adoption of this
Resolution.
APPROVED AND ADOPTED This 10th dayof November , 1969.
Mayor
ATTEST:
2 s
City Clerk
I HEREBY CERTIFY that the foreging Resolution was duly adopted by
the City Council of the City of Downey, at a regular meeting thereof held
on the 10th day of November, 1969, by the following vote:
AYES: 5 Councilmen: Ferris, Corbin, Winton, Morton, Temple
NOES: 0 Councilmen: None
ABSENT: 0 Councilmen: None
City Clerk