TITLE
A JOINT RESOLUTION AND PROCLAMATION ADVOCATING FOR LOCAL INFRASTRUCTURE INVESTMENT AND CALLING ON CONGRESS TO MAINTAIN THE TAX-EXEMPT STATUS OF MUNICIPAL BONDS
BODY
WHEREAS, Municipal bonds serve as the primary financing tool for local governments to fund essential infrastructure projects-including roads, bridges, water systems, and public safety facilities-ensuring long-term economic vitality, public safety, and community stability; and
WHEREAS, The American Society of Civil Engineers (ASCE) has consistently rated the nation's infrastructure in poor condition, most recently assigning it a grade of 'C-' and highlighting the urgent need for sustained investment; and
WHEREAS, Interest on municipal bonds has been exempt from the federal income taxes for over a century, dating back to the Revenue Act of 1913 which re-established the federal income tax; and
WHEREAS, Over $4.3 trillion worth of municipal bonds have been issued over the last decade (2015-2024) to fund vital infrastructure projects that enhance the nation's economy, including roads, bridges, airports, seaports, and water and sewer systems; and
WHEREAS, There are legislative proposals within the United States Congress that would eliminate or limit the tax-exempt status of municipal bonds; and
WHEREAS, Eliminating the tax exemption is projected to increase borrowing costs for state and local governments by an estimated $823.92 billion over the next decade (2026-2035), potentially leading to higher taxes and utility rates, with an average cost increase of $6,554.67 per American household, according to the Public Finance Network; and
WHEREAS, The City of Gahanna recently benefitted from the municipal interest exemption when the city issued a total of $64 million worth of tax-exempt municipal bonds to finance construction of 825 Tech Center Drive. Had the city issued bonds at then-prevailing taxable interest rates that were 2 percentage points higher, it would have increased the total interest...
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