Public reports indicate that the federal tax exemption on municipal bonds could be eliminated to extend the Tax Cuts and Jobs Act. Please adopt the sample resolution in support of preserving the tax exemption for municipal bonds.
Proposals to eliminate or reduce the tax exemption for municipal bonds would significantly increase borrowing costs for local governments, forcing difficult budget decisions and limiting our ability to invest in vital public projects. The elimination of the tax exemption would correspondingly raise borrowing costs by $823.92 billion, a cost that would be passed onto American residents and amount to a $6,554.67 tax increase for every American household over the next decade. These changes would shift financial burdens onto local taxpayers and risk delaying or canceling much-needed infrastructure improvements.
If you are unsure if your municipality has utilized tax-exempt municipal bonds over the past decades, the University of Chicago Center for Municipal Finance has a breakdown by congressional district. After clicking the link, scroll down to New Jersey and select the district where you live to review their analysis.
The League has reached out to the members of the New Jersey Congressional Delegation urging them to preserve this important infrastructure financing tool.
Contact: Paul Penna, Director of Government Affairs, ppenna@njlm.org, 609-695-3481, x110