The tax-exempt status of municipal bonds remains a potential target as Congress and the White House look for ways to streamline and reform the federal tax code, so two House lawmakers are promoting a bipartisan resolution marking the importance of tax-exempt financing to the nation’s communities.
Sponsored by Reps. Lee Terry (R-Neb.) and Richard Neal (D-Mass.), H.Res. 112 is a non-binding resolution marking the 100-year anniversary of tax-exempt municipal bonds and noting their importance “to the economic growth and wellbeing” to states and municipalities across the country. The resolution would carry no force of law if passed, but it could symbolically demonstrate support for maintaining the tax-exempt status of muni bonds should Congress consider a comprehensive tax reform bill later this year.
H.Res. 112 had the support of 61 members of Congress as of May 22, and water systems are encouraged to ask their congressional representatives to back the measure as well. Next month, AMWA will circulate a sample letter that utilities may use to request support for the resolution.