HomeMy WebLinkAboutRESOLUTION - 34-72 - 5/2/1972 - OBJECT TO TAXATION /LOCAL GOV BONDSRESOLUTION NO. 34-72
RESOLUTION OBJECTING TO THE :TAXATION OF LOCAL GOVERNMENT BONDS
WHEREAS, the State of Illinois has objected to the Federal Govern-
ment taxing state and local bonds, and
WHEREAS, the costs of building schools, public buildings, sewage
and water treatment facilities, and many other public improvements have
increased substantially in recent years, and
WHEREAS, the financing required to abate air and water pollution
as required by the state and federal governments will necessarily mean
that millions_ of dollars will be .required by the issuance of municipal
bonds, and
WHEREAS, the taxing of municipal bonds by either the state or
federal governments further deters municipalities from solving their
own problems because of the higher interest rates which must be paid
due to this taxation, and
WHEREAS, property tax rates are presently at a high level and this
taxation will further increase the=se rates due to future projects
critically needed, and
WHEREAS, the cost of living .is increasing substantially more than
the interest presently received on local government bond investments,
and
WHEREAS, the Illinois investors are placed in an unfair competitive
position, since most other states do not tax municipal bonds, and
WHEREAS, it is becoming more and more difficult to find purchasers
of local bonds with the present tight money market, with this taxation
further limiting issuance of bonds in Illinois when the need is becoming
more critical each day,
NOW, THEREFORE, BE IT RESOLVED that the President and Board of
Trustees of the Village of Elk Grove Village, Counties of Cook and
DuPage, State of Illinois, endorses the elimination of the state income
tax on local government obligations, and
BE IT FURTHER RESOLVED that -the objection of the state and local
governments to the federal government's taxation of state and local
bond interest is heartily endorsed, and
BE IT FURTHER RESOLVED that copies of this Resolution be distributed
to members of the Illinois Cities and Villages Municipal Problems
Commission, and other interested parties.
PASSED this 2nd day of May 1972.
APPROVED this 2nd day of May 1972.
Charles J. Zettek
Village President
ATTEST:
Richard A. McGrenera
Village Clerk