HomeMy WebLinkAbout69-56 - Municipal Bonds Tax Exemption - Urging ContinuanceRESOLUTION 69-56
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA
MESA URGING THE PRESERVATION OF TAX EXEMPTION FOR
MUNICIPAL BONDS AND PROTESTING ANY ATTEMPT BY THE
FEDERAL GOVERNMENT TO INCREASE THE COST OF LOCAL
GOVERNMENT TO TAXPAYERS
WHEREAS, the current threat to impose a tax on municipal obliga-
tions has caused turmoil in the bond markets and forced record financing
costs upon those municipalities which have been able to find a buyer for
municipal bonds; and
WHEREAS, removal of the tax exemption on income from municipal
bonds would constitute betrayal of investors who through the years have
bought municipal bonds in full faith that the income would be tax exempt;
and
WHEREAS, the cost to local taxpayers in financing public improvements
will be measured in billions, while the total yield to Federal tax collection
is estimated at but four hundred million; and
WHEREAS, the proposed removal of tax exemption from municipal
obligations would be a direct attempt by the Federal government to increase
the coat of local government to local taxpayers;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Costa Mesa, that this Council hereby strongly protests any attempt to remove
the tax exemption from municipal bonds, and urges that every effort be made
to preserve an exemption which has made possible nationwide public projects
at minimum costa to local taxpayers.
PASSED AND ADOPTED, this 4th day of August, 1969.
Mayor of the City of Costa Mesa
ATTEST:
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City Clerk of the City of Costa Mesa
STATE OF CALIFORNIA.)
COUNTY OF ORANGE ) SS
CITY OF COSTA MESA )
I, C. K. PRIEST, City Clerk of the City of Costa Mesa and ex -officio
Clerk of the City Council of the City of Costa Mesa, hereby certify that
the above and foregoing resolution No. 69-56 was duly and regularly passed
and adopted by the City Council of the City of Costa Mesa at a regular
meeting held on the 4th day of August, 1969.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Seal of the City of Costa Mesa, this 5th day of August, 1969.
CityCity Clerk efficio Clerk of the
of the
City Council of the City of Costa Mesa