Federal Action Agenda
The Tax Cuts and Jobs Act (TCJA) of 2017 was the largest change to the U.S. tax code in more than three decades. Major discussions around tax policy are likely to occur throughout this Congress.
NLC calls on Congress to preserve the tax exemption on municipal bonds, and that means all municipal bonds, including Private Activity Bonds (PABs), eliminate the $10,000 cap on the State and Local Tax (SALT) deduction, and restore the tax exemption for advance refunding bonds. By restoring this essential tax exemption, cities, towns and villages would be able to refinance their debt to achieve lower interest rates, saving local taxpayer dollars and freeing up capital for additional infrastructure investments.
Action and Legislation
Support H.R. 2772 to Protect and Expand Financing Tools for Municipal Infrastructure
NLC calls on Congress to cosponsor H.R. 2772, the Investing in Our Communities Act, a bipartisan bill that would restore the tax exemption on advance refunding bonds. Local governments own and maintain the lion’s share of the nation’s infrastructure. By restoring this essential tax exemption, cities, towns and villages would be able to refinance their debt to achieve lower interest rates, saving local taxpayer dollars and freeing up capital for additional infrastructure investments.
Resources
- Issue Brief: Protect the State and Local Tax Deduction (SALT)
Learn more about how SALT helps cities provide essential services.
https://www.nlc.org/sites/default/files/2017-09/FA_Support%20Cities%20SALT%202017.pdf - Issue Brief: Protect Municipal Bonds
Learn more about how municipal bonds help cities modernize our nation’s infrastructure.
https://www.nlc.org/sites/default/files/2017-02/FA_Protect%20Municipal%20Bonds%20v2.pdf - Issue Brief: Establishing Fairness for Main Street
The Supreme Court overturned the “physical presence” test for remote sales tax collection requirements. Cities need to make sure that they have a seat at the table and are working with state legislatures to ensure methods for the collection and remittance of local sales taxes are included in these discussions.
https://www.nlc.org/sites/default/files/2018-09/NLC%20MainStreetFairness%20One%20Pager.pdf - Report: 2020 City Fiscal Conditions
Our 35th annual City Fiscal Conditions report reveals that America’s cities are experiencing the fiscal consequences of this pandemic-downturn at an unprecedented speed – and like recent recessions, it will take years for municipal budgets recover from the impact of COVID-19.
https://www.nlc.org/sites/default/files/2020-08/City_Fiscal_Conditions_2020_FINAL.pdf