Laserfiche WebLink
<br />38 <br /> <br />TUESDAY, JULY 22, 1986 <br /> <br />or carry tax-exempt bonds, copies of which resolution are to be forwarded to <br /> <br />Virginia's Senators Trible and Warner and to Representative W. C. ("Dan") <br /> <br />Daniel of Virginia's Fifth Congressional District: <br /> <br />RES 0 L UTI 0 N <br /> <br />WHEREAS, the Congress of the United States has under con- <br />sideration the Senate and House tax reform bills; and <br /> <br />WHEREAS, the Senate bill <br />financial institutions to <br />interest paid on borrowing <br />bonds; and <br /> <br />maintains the current law allowing <br />deduct eighty percent (80%) of the <br />used to purchase or carry tax exempt <br /> <br />WHEREAS, the tax reform bill passed by the House of Repre- <br />sentatives would eliminate this deduction; and <br /> <br />WHEREAS, if the ability of banks and other financial institutions <br />to deduct interest incurred from borrowing used to purchase or <br />carry tax exempt bonds is denied or severely curtailed, the market <br />for state and local government bond issues would suffer, resulting <br />in higher cost to the issuers; now, therefore, <br /> <br />BE IT RESOLVED by the Council of the City of Hartinsvil1e, <br />Virginia, in regular meeting assembled on Tuesday, July 22, 1986, <br />that it hereby strongly supports the retention of the current law <br />permitting financial institutions to deduct eighty percent (80%) <br />of the interest paid on borrowing used to purchase or carry tax <br />exempt bonds, as set forth in the Senate tax reform bill. <br /> <br />Referring to certain resolutions which in the past have come before Council for <br /> <br />consideration and action and/or have been adopted by Council in the past, <br /> <br />Councilman McClain expressed his opinion that some of those resolutions and <br /> <br />their content and intent have been somewhat outside the purview of Council and, <br /> <br />while fully supportive of the foregoing resolution regarding proposed tax <br /> <br />reform bills, would have some problem with resolutions in the future which do <br /> <br />not affect the City, should there be any; whereas Councilman Cole described <br /> <br />such past actions of Council as a ready means of expressing Council's position <br /> <br />of support or of opposition on matters of community interest. <br />