HomeMy WebLinkAboutResolution No. 5637F r
RESOLUTION NO. 5637
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AZUSA EXPRESSING. OPPOST ION TO ANY ALTERATION
OF THE TAX-EXEMPT STATUS'OF MUNICIPAL BONDS.'
The City Council of the City of Azusa does resolve as
follows:
WHEREAS, it is essential that any government havethe
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 a 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 pro-
posal to enact a minimum income tax, and another proposal to set
a maximum amount of income that could be exempted from tax, enact-
ment of either of which, if they include interest paid on State and
local government obligations, would pose a serious constitutional
issue:
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Azusa opposes federal legislation that might alter the
tax exempt status of interest on local government bond issues; and
BE IT FURTHER RESOLVED that the Congress of the United
States be petitioned to refrain from enacting legislation which
would endanger the market for State and local securities and which
would make the performance of the responsibilities of local govern-
ment more difficult and more costly.
The City Clerk shall certify to the adoption of this
Resolution.
1969. Adopted and approved{this 20+hday of OntnhP,. ,
I hereby certify that the foregoing Resolution was duly
adopted by the City Council of the City of Azusa at a regular meeting
Yi
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0 0
thereof held on the �__day of , 19695
by the following vote of the Counci
AYES: Councilmen: Rubio, Decker, Cooney, Calvert, Solem
NOES: Councilmen: None
ABSENT: Councilmen: None
E
City clerk