Council introduces resolution opposing elimination of tax exemption for municipal bonds

The council introduced a resolution declaring support for preserving the federal tax exemption on municipal bonds, a tax treatment that municipal officials said supports local borrowing and investment.

During public comment, Joan Hoduanas urged the council to oppose elimination of the municipal bond tax exemption, arguing that changing the exemption would discourage investors and increase borrowing costs for cities. She told the council that while proponents say repeal could save the federal government large sums, the change would raise costs for households and businesses and would “discourage people from buying munis.”

Council members expressed support for the introduction. The resolution was introduced into the appropriate committee for further action; there was no final vote to send a position to federal lawmakers during the meeting.