www.mymanatee.org
Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - March 26, 2013
REVISED March 26, 2013 - Regular Meeting
Agenda Item #21


Subject
Preserve Tax-exemption for Municipal Bonds R-13-060

Briefings
None

Contact and/or Presenter Information
Jim Seuffert, Director, Financial Management Department, Ext 3760

Action Requested
Adoption of Resolution R-13-060  urging the President and Congress of the United States to preserve the current tax-exempt status of municipal bonds, and reject any proposal that would reduce or eliminate the Federal tax exemption on interest earned from tax-exempt municipal bonds.

Enabling/Regulating Authority
N/A

Background Discussion
  • Tax exempt municipal bonds have been used by state and local governments to finance public infrastructure since the inception of the Federal Income Tax.   The tax exemption on the interest paid to investors saves governments money in financing costs and also provides a benefit to the investors that earn the interest tax free.
  • However, current discussions in Washington D.C. pertaining to deficit reduction have been focused on either scaling back or ending the tax exemption on interest earned from municipal bonds.  Some proposals would even require that holders of previously issued tax exempt bonds begin to pay taxes on future interest earnings.  Although these actions would increase revenue for the federal treasury, they would increase infrastructure financing costs for governments and impose an additional tax burden on many citizens who had chosen or will choose to invest in municipal bonds.
  • Staff recommends that the county commission oppose federal measures that would scale back or end the tax exemption for interest earned on investments in municipal bonds.  Resolution R-13-060, which expresses that opposition, is presented herewith for approval by the commission.


County Attorney Review
Not Reviewed (No apparent legal issues)

Explanation of Other


Reviewing Attorney
N/A

Instructions to Board Records
Signed copies to:  President Barack Obama, 1600 Pennsylvania Ave NW, Washington, DC 20500; Congressman Vern Buchanan, 2104 Rayburn HOB, Washington, DC 20515; Senator Bill Nelson, 716 Hart Senate Office Building, Washington, DC 20510; Senator Marco Rubio, 317 Hart Senate Office Building, Washington, DC 20510, jim.seuffert@mymanatee.org.

Cost and Funds Source Account Number and Name
N/A

Amount and Frequency of Recurring Costs
N/A


Attachment:  R-13-060 Tax-Exempt Status of Municipal Bonds.pdf