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HomeMy WebLinkAbout46 of 1969 - A resolution urging reciprocity of tax immunity between federal and municipal bonds and securities t plIV • i _________ ,-___ti- Resolution No. 46 ` • By Mayor J. Bracken Lee COMMISSIONER Urging reciprocity of tax immunity between federal and municipal bonds and securities thereby rejecting the imposition of federal taxes on mun- ' icipal bonds. Presented to the tleett of Commissioner% AND PASSED I SEP9 1969 ! 1 *IWAICIIIPI:b"44 Cfe'Y it!CORDI I i i l I I . I Y 1 September 9, 1969 The Honorable Wallace F. Bennett United States Senator for Utah 1211 New Senate Office Building Washington, D. C. 20515 Dear Senator Bennett: Here is a resolution passed by the Board of Commissioners of Salt Lake City, Utah, urging reciprocity of tax immunity between federal and municipal bonds and securities. This is a very critical matter for Salt Lake City and it is respect- fully requested that you do everything in your power to see that the proposed measure, now before Congress, taxing municipal bonds be defeated. Respectfully, City Recorder HJH:pb Encicsue -1 September 9, 1969 The Honorable Frank E. Moss United States Senator for Utah Senate Office Building Washington, D. C. 20515 Dear Senator Moes: Here is a resolution passed by the Board of Commissioners of Salt Lake City, Utah, urging reciprocity of tax immunity between federal and municipal bonds and securities. This is a very critical matter for Salt Lake City and it is respect- fully requested that you do everything in your power to see that the proposed measure, now before Congress, taxing municipal bonds be defeated. spectfully, City Recorder HJH:pb Enclosure-1 ROLL CALL September 9 1969 VOTING Aye Nay Salt Lake City,Utah, - Barker . .' • I move that the Resolution,be adopt i Catmull . . • Harrison . . • /// Mn Chairman . ./ RESOLUTION Result . . . • WHEREAS, the exemption of municipal bond interest from federal income taxation is critically important in enabling the cities to discharge their mounting burden of responsibility at the lowest possible cost, and WHEREAS, suggestion has been made that indirect federal taxation of municipal bond interest be sanctioned by disallowance of a prorated portion of otherwise allow- able expense deductions of investors who receive part of their income from municipal bond interest, and WHEREAS, by Revised Statutes (Section 3701) Congress has expressly prohibited such indirect taxation of federal bond interest by the states and cities, and WHEREAS, the exemption of public securities--federal obligations from state and local taxes and state and local obligations from federal taxes--has traditionally been and of right ought to be reciprocal, NOW, THEREFORE BE IT RESOLVED by the Board of Commis- sioners of Salt Lake City that the Congress of the United States is urgently petitioned to reject all measures allow- ing direct or indirect taxation of municipal bonds. Passed by the Board of Commissioners of Salt Lake City, Utah, this 9th day of September, 19 . MAYOR r B41 N� CITY E viER