HomeMy WebLinkAboutResolution - 704 - Opposing Proposed Internal Revenue Service Ruling 80- 55 - 01/22/19811
DGV:cl RESOLUTION #704 - 1/22/81
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WHEREAS, the Internal Revenue Service of the Department of the Treasury
of the United States proposes by means of Internal Revenue Service Ruling 80-
55 to declare the interest from state government certificates of deposit not
deductible by banks if the certificates of deposit are secured by pledges of
municipal tax exempt bonds; and
WHEREAS, this proposed ruling will significantly impair the ability of
this city and other cities to raise funds for important public projects, since
banks are the major market for municipal bonds; and
WHEREAS, this proposed ruling will significantly increase interest which
must be paid upon such municipal bonds by the City of Lubbock and other
cities; and
WHEREAS, such increased interest and the Texas limitation of 10 per cent
interest maximum on municipal bonds may make such bonds unsaleable by the City
of Lubbock and other cities; and
WHEREAS, the City Council of the City of Lubbock believes that the
proposed ruling will have an adverse impact upon the health, safety and
welfare of the citizens of the City of Lubbock and of other cities; NOW
THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT said City Council of the City of Lubbock oppose proposed Internal
Revenue Ruling 80-55 and urge that it not be placed into effect, and
THAT copies of this resolution be forwarded to Senator John Tower,
Senator Lloyd Bentsen, Congressman Jim Wright, Congressman Kent Hance; the
Secretary of the Treasury and the Texas Municipal League.
Passed by the City Council this 22nd day of January ,1981.
B L McALISTER, MAYOR
'ATTEST.: --
Evely"ii Ga fga, City S c ary-Treasurer
( APPROVED AS TO CONTENT:
Obert Massengale, FinanCe Director
APPROVED AS TO FORM:
Donald G. Vandiver, First Asst. City Attorney