HomeMy WebLinkAboutResolution 11311. .
Adopted Resolution No.
A Resolution
Expressing the concern of the City Council on tax reform proposals
relating to tax-exempt municipal bonds.
WHEREAS, on December 17, 1985, the House of Representatives
passed H.R. 3838, entitled the "Tax Reform Act of 1985," which
includes amendments to the provisions of the Internal Revenue Code
that relate to the tax-emempt status of bonds issued by or on behalf
of the states and their political subdivisions; and
WHEREAS, H.R. 3838, if passed in its current form is
expected to have the following effects
(1) the costs of borrowing by local governments will be
increased with resulting higher taxes and higher
utility rates;
(2) the volume limitations of the bill unnecessarily
ration the ability of local governments to borrow
money for legitimate purposes,
(3) the bill places the risk of post-issuance taxability
of bonds issued by local governments on the investors;
and
(4) many traditional public purpose bonds can no longer
be issued due to the provisions which restrict the
rise of bond financed, government-owned facilities
by persons other than governmental entities.
WHEREAS, the City of Fort Worth depends and will continue
to depend on the issuance of tax-exempt bonds for needed capital
facilities; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
(1) That the City of Fort Worth strongly opposes H.R. 3838
in its current form and substance as it relates to the
issuance of tax-exempt bonds;
(2) That, with respect to any future revisions of H.R. 3838,
the City of Fort Worth urges the Congress to reject
any provisions that would result in direct and indirect
increases in the costs of borrowing by the states and
their local governments and instrumentalities in all
of their traditional public activities and specifically
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C= OF FORT WOR`iA
(3) That, in the tax reform effort, the City of Fort Worth
supports the continuation of the arbitrage limitations
now present in the Internal Revenue Code, and would
support precise and targeted amendments to current
law designed to restrict the potential for abuse of
tax-exempt financing.
AND BE IT FURTHER RESOLVED that the City Secretary forward
copies of this resolution to the appropriate members of the United
States Senate and the House of Representatives and the Secretary of
the Treasury.
APPROVED BY
CITY COUNCIL
MAR 4 1986
City $ecretaiy of the
City of Fob Anksk"
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CITY OF FORT WORTS