HomeMy WebLinkAboutRESOLUTIONS - 01011969 - 69-322 IN THE BOARD OF SUPERVISORS
C
CONTRA COSTA COUNTY, STATE OF 'CALIFORNIA
In the Matter of Opposing
the Federal Tax on the )
interest from Municipal ) RESOLUTION No. 69/322
Bonds.
The Board of Supervisors having been informed that the U. S.
Congress is considering the imposition of taxation on the interest
from municipal bonds; and
WHEREAS after analysis and review of this matter this Beard
finds and conelude that:
1. Municipal bonds are issued to obtain needed funds to
construct, improve or repair public facilities such
as schools, streets , highways, 'bridges, water and
sewer works, fire stations, libraries and for other
needed public purposes;
2. The interest on municipal bonds historically has
been exempt from all federal taxes bT virtue cif`
the doctrine of "reciprocal immunity ' and this
tax-free status of the bonds of our state and
local governments has been a cornerstone of
progress> in this nation and has been a guarantor
of state sovereignty and local autonormy
3 . The taxation of interest from municipal bonds will
increase 'interest costs considerably in a period of
historically high interest costs resulting in state
and local governments being prohibited from
marketing bonds authorized by the electorate due
to constitutional limitations ;
4,. Many ,institutional investors may be compelled to
dispose of their municipal band holdings resulting
in saturation and congestion in the band market;
5. The increase in debt service requirements for
local government due to higher interest costs
resulting from taxation of the income .from
municipal bands mist be financed by resorting is
more 'property taxes , a tax which is now high and
an onerous burden on property owners ,
6. A long and difficult period of constitutional
litigation would no doubt result which 'would
jeopardize the municipal bond market; and:
RESOLUTION No. 69/322
7. The proposed legislation would 'disrupt or destroy
the bond market as a unique and independent source
of capital for financing of public improvements
needed: and desired by local citizens and which
they are willing to pay for and shift control of
local capital financing to the federal govern-
ment thereby weakening state and local
government;
NOW, THEREFORE, BE IT BY THIS BOARD RESOLVED that for the
aforesaid reasons it vigorously; ,OPPOSES any legislation which`
would result in an imposition of federal taxes on the income`
from tax exempt municipal bonds; and
BE IT FURTHER RESOLVED that this Board communicate its
opposition to said tax to congressional representatives of the,
citizens of this county and urge their support of the position
taken by this Board on said natter.
PASSED AND ADOPTED this 13th day of May, 1969, by the
following vote of the Board:
AYES: Supervisors J. P. Kenny, T. J. Coll,
E. A. Linsche d, J. E. Mbriartg,,
NOES,: None.
ABSENT: Supervisor A. M. Dias .
RESOLUTION N O. 69]322'