Municipal Bond Tax Exemption
As Congress continues to deliberate tax reform, municipal bonds are at risk of being eliminated or capped. If proposals to eliminate or limit the tax exemption become law, local governments will pay more to finance projects, leading to less infrastructure investment, fewer jobs, and greater burdens on those who will have to pay higher taxes and fees.
Municipal bonds have been a foundation for local infrastructure finance for over 100 years. The threat to this important resource is very real, and Georgia’s delegation members need to hear from city officials. GMA encourages all city officials to touch base with your Senators and Congressmen to urge them to protect the tax treatment for municipal bonds.
In 2016, U.S. Reps. Dutch Ruppersberger (D.-MD) and Randy Hultgren (R.-IL) co-founded the Municipal Finance Caucus of the U.S. House of Representatives. Created to fight for the right of state and local governments to independently finance the projects they need to keep their communities strong, the Municipal Finance Caucus is also focused on maintaining the current federal tax exemption for municipal bonds. Please contact your Congressman and urge him to join this bipartisan caucus and protect Georgia's state and local governments' access to this important infrastructure financing tool.
Tax Reform to Potentially Impact Municipal Bond Tax Exemption
The White House and a group of Republican legislators and administration officials known as the “Big Six” are expected to release a framework for tax reform on Wednesday and the municipal bond tax exemption is one of the exemptions that is on the table.