CC Resolution No. 834 1475
RESOLUTION NO. 834
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAYTOWN SUPPORTING THE REPEAL OF TITLE 26, SECTION
103 (j) OF THE INTERNAL REVENUE CODE REQUIRING
MUNICIPALITIES TO ISSUE FULLY REGISTERED SECU-
RITIES.
1F iFiF i#iF#iF 3FA-iF k ikiF 3FiF M iliFiF%iF k K k if rttitiF 3FiFiFlFit+F*:F*3F 4kjt if iF*iF iF:t i(it 3E 3F if i kf�l-kiF iF iF-k iF itlt#iFiF iF iF M£it if*iF fF�(--1F#*4 f M-iF
WHEREAS, the Tax Equity and Fiscal Responsibility Act of 1982, as amended,
enacted by the Congress of the United States, requires municipalities to issue fully
registered securities before the interest from such securities will be entitled to
exemption from federal income taxation under the Internal Revenue Code; and
WHEREAS, bearer bonds have been the principal method of securing debt by
municipal government; and
WHEREAS, over $380 Billion of municipal securities in bearer form are
outstanding nationally; and
WHEREAS, fully registered securities will find a limited market for a
substantial number of years due to the availability of bear bonds; and
WHEREAS, the requirement of issuing fully registered securities will drive
small investors from the bond market due to the registered securities' lesser
marketability as a result of increased costs and delays in transfer; and
WHEREAS, the requirement of issuing fully registered securities will directly
effect the ability of municipal depository banks to pledge municipal securities under
state law; and
WHEREAS, the requirement of issuing fully registered securities will increase
record keeping and costs to issuers thereby increasing the costs of borrowing and
interest rates paid by municipal government;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF BAYTOWN:
Section 1: That the City of Baytown supports the repeal of Title 26, Section
103(j), of the Internal Revenue Code requiring the issuance of fully registered
securities before the interest from securities will be entitled to exemption from
federal income taxation, and further urges those who represent the citizens of
Baytown in the Congress of the United States to pass legislation repealing the above
provision.
1476
Section 2: This Resolution shall take effect immediately from and after its
passage.
INTRODUCED, READ AND PASSED by affirmative vote of the City Council
on this the 24th day of March, 1983.
MM . HU TO, Mayor
ATTEST:
EILENP. HALL, City Clerk
APPROVED:
R� ANDA L B. STRON , ity Att y