A recent Government Finance Officer’s Association Newsletter highlights a new tool developed by the National League of Cities to help state and local government bond issuers calculate the impact of federal proposals to repeal or replace the tax exemption on municipal bond interest with a 28% investor deduction cap.
The tool, which is available on NLC’s website, allows issuers to input the annual interest rate on a debt issuance, the term of the loan, and principle amount, and quickly generate the projected cost impact that each federal proposal would have on the issuer.
The GFOA encourages its members to use the calculator, along with the outreach resources the GFOA has developed for communication with your congressional delegations. Members of Congress are home in their districts for the month-long August recess, and it is critical for GFOA members to meet with them and urge them to protect the tax exemption. Members can access all of the tax exemption advocacy tools the GFOA has organized on the Federal Government Relations page.