Municipal Bonds Update

59 ORGANIZATIONS UNITE ON BONDS: The National Association of Counties, U.S. Conference of Mayors and National League of Cities coordinated a national campaign to protect the tax-exempt status of municipal bonds. Yesterday evening, our coalition and a total of 59 national organizations sent a letter to the Senate urging that dangerous language in the budget resolution be clarified to protect municipal bonds from either a 28 percent cap or total elimination. To view the letter, click here and to view the press release, click here.

ACTION NEEDED: Urge your Senators to speak out in support of tax-exempt municipal bonds during the Senate floor debate on the FY2014 Budget Resolution, which has begun.  The Senate’s FY2014 Budget Resolution contains language that could support either a 28 percent cap (as proposed by the Obama Administration) or total elimination (as proposed by the Simpson-Bowles Commission) of tax-exempt financing 

SEN. BEGICH (D-AK) TO SEND LETTER TO PRESIDENT ON MUNI BONDS: Sen. Begich is planning to circulate a letter urging President Obama to protect the tax-exempt status of municipal bonds in the ongoing debt and deficit negotiations.

  • ACTION NEEDED: Urge your Senators to sign on to the Sen. Begich letter to President Obama on municipal bonds 

REPS. TERRY (R-NE) AND NEAL (D-MA) INTRODUCE RESOLUTION ON MUNI BONDS: The resolution (H. Res. 112) celebrates the history of municipal bonds and recognizes their importance. They are currently seeking co-sponsors for the resolution.

  •  ACTION NEEDED: If your Members would like to sign on, have their staff contact either A.T. Johnston in Rep. Terry’s office (at.johnston@mail.house.gov or 202.225.4155) or Kara Getz in Rep. Neal’s office (kara.getz@mail.house.gov or 202.225.5601)

NACo LEGISLATIVE UPDATE: On March 19, NACo held a joint conference call with the National League of Cities to provide a legislative update on municipal bonds and to discuss the movement this week on Capitol Hill. Click here to view the presentation.  

Marketplace Fairness Act Update

This week, NACo learned that Sens. Durbin (D-IL), Enzi (R-WY) and Alexander (R-TN) plan to offer an amendment on the Marketplace Fairness Act as part of the Senate consideration of the 2014 Budget Resolution. The amendment will serve as a test vote on the Marketplace Fairness Act (S. 336/H.R 684).

While it is unlikely that the House and Senate will agree on a budget resolution, this vote will test whether the Senate has 60+ votes needed to pass the actual legislation later this year.

  •  ACTION NEEDED: Urge your Senators to co-sponsor the Marketplace Fairness Act amendment that is expected to be offered to the FY 2014 Budget Resolution. If 60+ votes are not secured, it becomes harder to move the legislation later. Click here to view the current list of co-sponsors.   
  • NACo legislative fact sheet on remote sales tax collection

 If you have questions about these or other issues contact:
NACo Legislative Director Deborah Cox (202.942.4286 or dcox@naco.org) or
NACo Associate Legislative Director Mike Belarmino (202.942.4254 or mbelarmino@naco.org)