69-W _R _E_S_O_ L_ U _TI _O_N_ No. 69--M/
WHEREAS, the exemption of municipal bond interest from federal
income taxation is critically important in enabling the cities to discharge
their mounting burden of responsibility at the lowest possible cost, and
WHEREAS, suggestion has been made that indirect federal taxation
of municipal bond interest be sanctioned by disallowance of a prorated
portion of otherwise allowable expense deductions of investors who receive
part of their income from municipal abond interest, and
WHEREAS, by Revised Statutes (Section 3701) Congress has
expressly prohibited such indirect taxation of federal bond interest by the
states and cities, and
WHEREAS, the exemption of public securities--federal obligations
from state and local taxes and state and local obligations from federal taxes
--has traditionally been and of right ought to be reciprocal,
NOW, THEREFORE BE IT RESOLVED by the City Council of the
City of Boynton Beach, Florida that the Congress of the United States is
urgently petitioned to reject all measures allowing direct or indirect
taxation of municipal bonds.
Passed and adopted this
~~r~k~ day of September, A. D., 1969.
CITY OF BOYNTON BEACH, FLORIDA
Mayor ' ~ ,"" ~' ~'
ATTEST
City Clerk
(CORP. SEAL)