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HomeMy WebLinkAboutPackets - Council Packets (97)NATIONAL LEAGUE of CITIES NLC calls on Congress to authorize a new, long-term federal surface transportation bill that: • Authorizes at least six years of transportation programs and funding, • Enables more local control, • Supports innovative programs and finance and • Helps fix the Highway Trust Fund. Local governments own and operate 78 percent of the nation's road miles, 43 percent of the nation's federal - aid highway miles, and 50 percent of the nation's bridge inventory. Local elected officials should have the authority to direct available transportation resources to projects serving their communities and regions. However, local governments and their metropolitan and regional planning organizations directly receive less than 15 percent of current federal Percentage of US Road Miles Owned by Local Governments Source: U.S. Department of Transportation transportation funding. The last major transportation bill, the Moving Ahead for Progress in the 21st Century Act (MAP -21), consolidated programs important to local governments, reduced funding available for locally owned highways and bridges by 30 percent, and eliminated almost all discretionary programs for transit. Congress can fix this imbalance. A new transportation bill should directly allocate greater funding to cities and metropolitan organizations and provide more flexibility to choose the best mix of transportation options to fit regional needs. Cities and towns are embracing innovation to create new opportunities for struggling commercial districts and neighborhoods in distress. Programs like the Transportation Alternatives Program (TAP) and Transportation Infrastructure Finance and Innovation Act (TIFIA) financing are tools that enable innovation. A new transportation bill must be long- term. Crisis -driven legislation and short- term extensions create insurmountable obstacles for transportation and infrastructure projects. The next bill should authorize transportation programs and funding for at least six years to restore certainty and stability to the transportation planning process at the local and regional level. Finally, the next transportation bill should be built on a stable foundation. The Highway Trust Fund, which finances the majority of transportation programs, has been unable to maintain sufficient revenue to support the nation's transportation needs. It is time for Congress to find a long- term solution that may, among other means, include an increase in the federal gasoline tax. For more information, visit www.nlc.org/transportation or contact Mike Wallace at 202.626.3025 or wallace@nlc.org. NATIONAL LEAGUE of CITIES NLC calls on Congress to close the online sales tax loophole. E -fairness legislation will: • Level the playing field between online and brick -and -mortar retailers. • Not introduce any new taxes. • Provide local governments with the resources they need to invest in communities, build infrastructure and provide important services like emergency response. $23 billion dollars in owed sales tax go uncollected from online transactions every year. The brick -and -mortar businesses in our cities strengthen our local economies, provide needed jobs, and give our streets character. Despite their necessity to our cities, they currently compete at a five to ten percent disadvantage to online sellers by collecting legally required sales tax at the time of purchase - something online retailers are not compelled to do. This imbalance hurts local businesses and our cities. As more Americans shop online, more and more economic activity is diverted away from our communities. In 1992, the Supreme Court told Congress in its Quill decision to resolve the issue of sales tax collection by remote sellers. In the intervening years, Congress has failed to act, and the dollar value of sales conducted online has increased exponentially. If main street retailers cannot keep up as a result of this growing disadvantage, the ripple effect in lost jobs and revenue will threaten our communities' sustainability. Congress can fix this unfairness. E -fairness legislation would close the online sales tax loophole. 'This legislation would modernize the sales tax by authorizing states and local governments to collect already -owed sales taxes for online sales. This path will not harm small businesses, impose any new taxes, or affect federal revenues or expenditures. By passing e -fairness legislation, Congress will level the playing field for all sellers and will provide fiscal relief for state and local governments without a penny coming from the federal Treasury. Allowing local governments to collect an estimated $23 billion in sales tax revenue every year that is already owed provides cities with more funding for basic services, such as roads and police officers, and fair competition for all businesses. For more information, visit www.nic.org/efairness or contact Priya Ghosh Aholo, Esq. at 202.626.3015 or ghosh@nlc.org. NLC calls on Congress and the Administration to preserve the municipal bond federal income tax exemption for the following reasons: The exemption is not a special interest loophole and should not be treated as such. • Municipal bonds are the primary way local and state governments finance infrastructure, and have been for over a century. • Over two-thirds of all public infrastructure projects in the United States are financed by municipal bonds. Percentage of public infrastructure financed by tax-exempt bonds: Utilities: 87% Environment: 54% Education: 65% Heath Care: 40% Transportation: 35% Municipal bonds are the primary way state and local governments finance the public infrastructure that supports everyday life. Bonds finance construction of schools, hospitals, bridges, water treatment facilities, libraries, and many other public projects. Voters and governmental bodies approve issuance of these bonds, which are then purchased by private individuals, mutual funds and financial institutions. 'Ihe interest gained by these investors is exempt from the federal income tax, and has been since the tax was instituted in 1913. As the Administration and Congress look for ways to reduce the federal deficit and still fund programs, the federal income tax exemption provided to municipal bond interest is under threat. If the federal income tax exemption is eliminated or limited, states and localities will be forced to pay more to finance projects. That will mean less infrastructure investment, fewer jobs, and a greater burden on local residents forced to pay higher taxes and fees. Local governments save an average of 25 to 30 percent on interest costs with tax-exempt municipal bonds (as compared to taxable bonds), thanks to investors who are willing to accept a lower interest rate on tax-exempt bonds. The exemption is similar to the exemption for federal Treasury bonds — another stable investment vehicle — from state and local taxes. Municipal -bond -funded projects create jobs, provide a stable investment vehicle for investors, and help reduce local tax and utility rates for community residents. Congress must protect this critical tool for local governments to rebuild and improve America's infrastructure, and maintain the federal tax exemption for municipal bonds. For more information, visit www.nlc.org/munibonds or contact Priya Ghosh Ahola, Esq. at 202.626.3015 or ghosh@nlc.org.