HomeMy WebLinkAboutRes 22-69 09/02/1969
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RESOLurION NO. 22-69
URGING RECIPROCITY OF TAX IMMUNrry BETWEEN
FEDERAL AND l>lUN1:CIPAL BONDS AND SECURrrmS
i'JHEREAS, the exemption of rrnmicipal bond interest from federal income
taxation is critically important in enabling the cities to discharge their
molIDting burden of responsibility at the lowest possible cost; and
WHEREAS, suggestion has been made that indirect federal taxation of
nnmicipal bond interest be sanctioned by disallowance of a prorated portion
of otherwise allowable 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
i'JHEREAS, the exemption of publip 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, THEREFDRE, BE rr RESOLVED BY THE PRESIDENI' AND BOARD OF TRUSTEES
OF THE VILLAGE OF MJUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: That thecbngress of the United states is urgently
petitioned to reject all measures allowing direct or indirect taxation of
rrnmicipal bonds.
SECTION TWO: That the Village Clerk of the' Village of Mount Prospect
is hereby directed to forward certified copies of this Resolution to members
of the Senate and House of Representatives elected from our Congressional
District.
SECTION THREE: That this Resolution shall be in full force and effect"
from and after its passage and approval in the manner provided by law.
AYES: 6
NAYS: 0
PASSED AND APPROVED THIS 2
September
, 1969
DAY OF
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ATI'EST :
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