Senate Finance Committee Working Groups Spare Tax Exempt Municipal Bonds; GFOA Leads Education Effort

Wednesday, July 15, 2015

Following up on efforts that began in January 2015, the Senate Finance Committee unveiled the reports of the committee’s bipartisan tax reform working groups, which were assembled more than six months ago to evaluate and identify portions of the federal tax code that are ripe for reform. GFOA led joint discussions with the working groups and its colleagues at the National League of Cities, U.S. Conference of Mayors, and National Association of Counties to educate working group members on the priority federal tax provisions of local governments, including the tax exemption on municipal bond interest and the state and local tax deduction.

These groups, along with the International City/County Management Association, submitted formal comments to the working groups on April 14. Last week working group members reported out their recommendations, which are available here. None of the working groups suggested repealing the tax exemption on municipal bond interest in any of their tax reform recommendations.