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County chair plans outreach after federal talk of limiting tax‑exempt municipal bonds
Summary
Committee chair said Jan. 13 he will contact Rep. Moore and work with NACo to oppose proposals in Washington, D.C., to eliminate tax‑exempt municipal bonds, warning that removing the exemption would raise borrowing costs and shift costs to taxpayers.
During the Jan. 13 meeting the committee chair raised a federal policy concern: members reported growing discussion in Washington about proposals to remove or limit tax‑exempt municipal bonds. The chair said he will reach out to Representative Moore, is in contact with Representative Malloy and expected materials from the National Association of Counties (NACo) to prepare a response.
Officials said removing the tax exemption on municipal bonds would increase borrowing costs for local governments and, in turn, raise costs for taxpayers when the county issues bonds for capital projects. The chair urged the committee to focus local advocacy on protecting tax‑exempt financing for ‘‘core government services’’ such as libraries, jails and public infrastructure.
The committee did not take a formal vote on advocacy at the Jan. 13 meeting but the chair said he would pursue conversations with the county’s federal delegation and national associations to highlight the local consequences of any change to tax treatment for municipal borrowing.
