HomeMy WebLinkAbout69-153BOARD OF- SUPERVISORS
COUNTY OF BUTTE, .STATE OF CALIFORNIA
Resolution No. 69- ~S ~
RESOLUTION OPPOSING CHANGE IN TAX-EXEMPT
STATUS OF MUNICIPAL BONDS
WHEREAS, this board is informed that the Congress of the
United States, in seeking acceptable methods of tax reform, is again
considering the possibility of removing or otherwise changing the
tax-exempt status of interest on municipal obligations, or limiting
individual tax preferences in such a manner as to directly affect
the market value of otherwise exempt securities, and that legislation
to this effect has been passed by the House of Representatives; and
WHEREAS, any such change would have catastrophic consequences
on the economy of all local governments throughout the United States,
including this county, in that the market for any securities of many
local government agencies would disappear completely, the cost of
municipal financing would materially increase for those which could
market their securities at all, property taxes would universally
increase to a substantial extent because of the greater expense
involved in higher interest rates, charges for municipal utility
service would substantially increase because of the higher cost of
revenue financing, federal subventions would have to be increased and
the cost of administering federal programs would go up proportionately,
all to the material detriment of local and municipal taxpayers through-
out the United States, including the taxpayers of this county,
NOW, THEREFORE, IT IS DETERMINED AND ORDERED, that this board
is strongly opposed to any legislation which would rescind, modify or
in any way weaken the tax-exempt status of interest on municipal
obligations, including the tax reform bill which has been passed by
the House, (H.R. 13270, 91st Congress, 1st session) and the honorable
representatives of the State of California in the Congress of the
United States are respectfully urged to oppose any such proposed
legislation with vigor and fortitude.
I.T" IS FURTHER ORDERED that certified copies of this resolution
be sent to the Honorable George Murphy, United States Senator, and
the Honorable Alan Cranston, United States Senator, and any other
interested parties.
PASSER AND ADOPTED by the Board of Supervisors of the County
of Butte, State of California, this 26th day of August, 1969, by the
following vote:
AXES: Supervisors Dunaway Howsden~ Maxon Reynolds and
Chairman McKillop
NOES: done
ABSENT:Nonc
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McKILLOP, C ai man of t e
tte County Board of Supervisors
ATTEST:
CLARK A. NELSON, County Clerk
and ex-officio Clerk of the
Board of Supervisors
By - ._