Bill Text: NJ AR94 | 2018-2019 | Regular Session | Introduced
Bill Title: Urges Congress and President to continue tax exemption for municipal bond interest.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-02-01 - Introduced, Referred to Assembly State and Local Government Committee [AR94 Detail]
Download: New_Jersey-2018-AR94-Introduced.html
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Urges Congress and President to continue tax exemption for municipal bond interest.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging Congress and the President to continue the tax exemption for municipal bond interest.
Whereas, The State of New Jersey and its 565 municipalities undertake many capital improvements for the benefit of the public by financing the cost of improvement projects through the issuance of bonds and notes, the interest on which is exempt from federal income taxation; and
Whereas, The federal tax exemption for municipal bond interest has been in effect since the inception of the federal income tax in 1913, and remains essential in permitting states and local governments to affordably and effectively carry out their responsibilities to their citizens; and
Whereas, In 2010, the National Commission on Fiscal Responsibility and Reform (the "Simpson-Bowles Commission") recommended that interest on newly issued state and municipal bonds be subject to federal income taxation; and
Whereas, The federal American Jobs Act of 2011, proposed by President Obama, would deny tax exemption for interest on state and municipal bonds to taxpayers in the "upper tax brackets"; and
Whereas, Congress and the President have adopted legislation and are considering additional legislation that would eliminate or severely restrict the ability of States and their political subdivisions to issue tax exempt bonds, even though the effect of such action would be to raise the cost of the necessary services provided by the State to residents, including disadvantaged and middle-class families; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This house urges Congress and the President to continue the federal tax exemption for municipal bond interest.
2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested to by the Clerk thereof, shall be transmitted to the President of the United States, the Senate Majority Leader, the Speaker of the House of Representatives, and each member of Congress from the State of New Jersey.
STATEMENT
This resolution urges Congress and the President to continue the exemption of municipal bond interest for personal income tax purposes.
The State of New Jersey and its 565 municipalities undertake many capital improvements for the benefit of the public by financing the cost of improvement projects through the issuance of bonds and notes, the interest on which is exempt from federal income taxation. The federal tax exemption for municipal bond interest has been in effect since the inception of the federal income tax in 1913 and remains essential in permitting states and local governments to affordably and effectively carry out their responsibilities to their citizens. In 2010, the National Commission on Fiscal Responsibility and Reform (the "Simpson-Bowles Commission") recommended that interest on newly issued state and municipal bonds be subject to federal income taxation. The federal American Jobs Act of 2011, proposed by President Obama, would deny tax exemption for interest on state and municipal bonds to taxpayers in the "upper tax brackets."
Congress and the President have adopted legislation, and are considering additional legislation, that would eliminate or severely restrict the ability of States and their political subdivisions to issue tax exempt bonds, even though the effect of such action would be to raise the cost of the necessary services provided by the State to residents, including disadvantaged and middle-class families.
