1985-065-RES WHEREAS, on May 29, 1985, President Reagan submitted his tax proposal to Congress; and,
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RESOLUTION NO. 85-065
WHEREAS, on May 29, 1985, President Reagan submitted
his tax proposal to Congress; and,
WHEREAS, included in the President's tax proposals are
provisions which would eliminate or limit the tax-exempt
status of state and local government bonds, including bonds
issued by the City of Paris, Paris, Texas; and,
WHEREAS, the President's proposals would deny tax-
exempt status to bonds where the private sector benefits
directly or indirectly from the use of more than one percent
of the proceeds of the bond issue; would eliminate all
advance refundings of tax-exempt bonds; would restrict the
investment of bond proceeds; would require that certain
earnings from the investment of bond proceeds be paid to the
U. S. Treasury Department; would require that an Internal
Revenue Service information report be filed for every bond
issue; and would impose additional taxes on banks that
purchase tax-exempt bonds; and,
WHEREAS, each of the President's proposed limitations
on tax-exempt municipal bonds would adversely affect the
City of Paris, bond issues and the use made of facilities
financed with such issues, requiring filings with the
Internal Revenue Service and review by the Internal Revenue
Service of each bond issue, and jeopardizing the tax-
exemption on bonds where the private sector benefits
directly or indirectly from the use of more than one percent
of a project financed by such bonds; and,
WHEREAS, the President's municipal bond proposals will
result in an increase in costs which must be passed on to
the citizens of Paris, Texas, to provide vital public
services to such citizens and will impose added federal
bureaucratic controls over the provisions of such services;
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, That the City Council of the City of Paris goes on
record as oppos~ng the limitations and restrictions on
municipal bonds proposed by the President, which, if enacted
into law would adversely affect all tax-exempt municipal
bonds, including bonds issued by the City of paris, Paris
Texas; and,
BE IT FURTHER RESOLVED, that copies of this Resolution
shall be sent to members of Congress urging them to oppose
the provisions of the President's tax proposals which would
impose new limitations on the issuers and purchasers of
municipal bonds.
Passed and adopted this 12th day of August, 1985.
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ATTEST:
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Matt~e Cunn~ng am, C ty Clerk
APPROVED
T. K. Haynes, City Attorney