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HomeMy WebLinkAbout13-125RESOLUTION NO. 13-125 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF ST. LUCIE COUNTY, FLORIDA, URGING THE ADMINISTRATION AND CONGRESS OF THE UNITED STATES TO PRESERVE THE CURRENT TAX- EXEMPT STATUS OF MUNICIPAL BONDS, AND RE]ECT ANY PROPOSAL THAT WOULD REDUCE OR ELIMINATE THE FEDERAL TAX EXEMPTION ON INTEREST EARNED FROM TAX-EXEMPT MUNICIPAL BONDS, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners of St. Lucie County, Florida, has made the following determinations: 1. Several proposals are being discussed in the ongoing Federal budget negotiations that would either reduce or eliminate the current tax exemption on the interest earned from tax-exempt municipal bonds. 2. Florida state and local governments recognize that tax-exempt municipal bonds are an important tool for financing critical infrastructure projects, such as schools, hospitals, water and sewer systems, roads, highways and streets, public power facilities, mass transit projects, airports, solid waste, sanitation and recycling, multi-family housing, police and fire stations and equipment, bridges, tunnels and other infrastructure projects. 3. Florida state and local government investments in infrastructure improvements create jobs and enhance our communities. 4. Florida state and local government entities have financed more than $103 billion in infrastructure investments from 2003-2012 through the tax-exempt bond market. 5. If municipal bonds were fully taxable during this time period, it is estimated that the $103 billion financed would have cost governmental entities an additional $30.9 billion in interest expenses. 6. If the proposed 28 percent cap on the deduction for municipal bond interest for new and outstanding state and local tax-exempt bonds were in effect, that additional cost would have been approximately $10.8 billion. 7. Changes to the tax-exempt status of municipal bonds would significantly limit future state and local government investments in critical public infrastructure, increase costs for Florida's governmental entities and, ultimately, pass the burden of higher construction costs onto all of Florida's taxpayers. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of St. Lucie County, Florida, that: 1. St. Lucie County supports the preservation of the existing tax-exempt status of municipal bonds. 2. St. Lucie County opposes legislative provisions that would repeal or eliminate the tax-exempt status of municipal bonds. 3. St. Lucie County opposes legislative provisions that would repeal, limit or "cap" the deduction for interest earned on new and outstanding municipal bonds. 4. This resolution shall take effect immediately upon adoption. After motion and second, the vote on this resolution was as follows: Chairman Tod Mowery AYE Vice Chair Frannie Hutchinson AYE Commissioner Chris Dzadovsky AYE Commissioner Paula A. Lewis AYE Commissioner Kim Johnson AYE PASSED AND DULY ADOPTED this the 16th day of July, 2013. `~ n ;- ;s-t ~- :-.r_i ~; .~ .. ~~`~' ~. 5# ' BOARD OF COUNTY COMMISSIONERS ST. LUCIE COUNTY, FLORIDA BY: I A U CHAIRMAN APPROVEp~4S TO CORREC N SSr ,. h,~,,..~.~i FORM AND COUNTY A ATTEST: ~~~~ Gt,irYi G