Loading...
HomeMy WebLinkAbout09-86 ResolutionRECORD OF RESOLUTIONS National Graphics Corp., Cols., O. ~=~3,Ti~ n9~~jj(~ Form No. 6233-A Resolution _\"c~. 09-86 Passed - ----- -- --------------------------------19-------- RESOLUTION EXPRESSING OPPOSITION BY THE VILLAGE OF DUBLIN TO THE PROVISIONS OF H.R. 3838 RELATING TO STATE AND LOCAL i GOVERNMENT OBLIGATIONS AND THE DEDUCTI- BILITY OF STATE AND LOCAL TAXES AND URGING CONGRESS NOT TO ENACT THOSE PROVISIONS, AND REQUESTING IMMEDIATE ACTION TO POSTPONE THE EFFECTIVE DATE OF THOSE PENDING PROVISIONS. WHEREAS, on December 17, 1985 the United States House of Representatives passed H.R. 3838, entitled the "Tax Reform Act of 1985", with a general effective date of January 1, 1986; and WHEREAS, H.R. 3838 imposes new, complex and ambiguous federal require- ments, conditions, prohibitions and limitations for the interest on new obligations of the Village of Dublin, and of other state and local governments, to be and to remain exempt from federal income tax, including: expenditure of at least 5% of the proceeds within 30 days and 100% within three years; restricting particular uses of proceeds even though determined by this Village to be for needed essential governmental programs permitted under State law; and restricting invest- ment income on moneys of this Village, and requiring the Village to pay over to the United States treasury certain earnings on investments of its own money; and WHEREAS, many of these provisions of H.R. 3838 materially conflict, legally or practically, with the laws of this State and provisions of the Charter of the Village of Dublin, and impose many practical and legal problems that will in many cases make it impossible or more expensive for this Village to finance essential governmental projects with tax-exempt obligations, thereby substantially increasing the costs of those projects, making the Village less able economically to provide essential governmental services and facilities to its citizens and to carry out needed and permissible local public programs, and unduly and unnecessarily burdening the tax and rate payers of this Village; and WHEREAS, other provisions of H.R. 3838 directly and indirectly force increases in our interest costs in eliminating or limiting many of the potential purchasers of obligations of the Village of Dublin by, for example, disallowing interest expense deductions of financial institutions, including those servicing this Village, relating to tax- exempt obligations, and disallowing property and casualty insurance company deductions by the amount of its tax-exempt income; and WHEREAS, the retroactive effective date now stated in pending H.R. 3838 forces current compliance with the Bi11's provisions, even though not yet law, and the uncertainty surrounding the enactment of this or any similar legislation with a retroactive effective date has already resulted in increased interest costs to state and local governments and will result in increased interest costs to this Village; and WHEREAS, uncertainty as to the provisions of and effective date of federal tax legislation makes it impossible for the Village of Dublin to properly plan for its needed public facilities; and WHEREAS, the postponement to September 1, 1986 of certain provisions of H.R. 3838 with respect to specified obligations, as provided for in the Joint Statement of March 14,1986, is not responsive to a need for federal tax legisla*_ion which is prospective only and thus allows appropriate planning for the financing of needed public facilities; and RECORD OF RESOLUTIONS National Graphics Corp., Cols., O. ~~`~' na~~~ Resolution ho. 09-86 Page Two Form No. 6233-A Pcissed -------------------------------_ 19- ------ WHEREAS, elimination of the deduction of state and local taxes on Federal income tax returns would significantly impair the state or local government's ability to raise these taxes in the event they would be needed to fund public services or facilities; and WHEREAS, municipalities will most likely need to utilize local taxes for funding of projects due to the reduction in Federal assistance; and WHEREAS, quite apart from concerns arising out of specific provisions of H.R. 3838 are the serious constitutional and federal system issues H.R. 3838 presents. NOW, THEREFORE, BE IT RESOLVED by the Council of the Village of Dublin that: Section 1. The Council of the Village of Dublin opposes the enactment by the Congress of the provisions of H.R. 3838 applying to its tax- exempt financings and related matters, and urges Congress, and particular the Senators from this State and the Representative(s) from this district to not enact those provisions of H.R. 3838 or any similar federal tax legislation that may be proposed that restrict, directly or indirectly, the ability of this Village and state and local governments generally to undertake tax-exempt borrowings for governmental purposes at the lowest cost to taxpayers and rate payers. Section 2. This Council urges that immediate action be taken by or on behalf of Congress, pending resolution of substantive issues, to remove the January 1, 1986 retroactive effective date in H.R. 3838 or any other retroactive effective date, and to provide and ensure an effective date for the onerous provisions of H.R. 3838, or any other similar federal tax legislation, so that any such legislation, if enacted, will apply only to new obligations issued after the date it becomes law. Section 3. This Council opposes elimination of the deduction for state and local taxes on Federal income tax returns, and urges Congress to continue to allow this deduction as it is currently available to tax- payers. Section 4. The Clerk of Council is directed to forward copies of this resolution to the members of the Senate Finance Committee and of the House Ways and Means committee, and to the Senators from this State and Representative(s) from this district, and is authorized to post this resolution in public places or mail copies to voters as may be deemed appropriate. Passed this 5th day of MaY 1986. Mayor - Presiding Officer Attest: I hereby certify that copies of this Orc ti. ere r,, .,~ i ~~ ., ~ C~_ .,~ i~ ~/G~i,y''.~iJ %%% ~~'~J"~'- "' ~2~~ I ~_.[~ u` ii'2 ~ ~ ..,, a ~~"~. Clerk of Council ~ C'erk cf Ccu~:dl wiih