HomeMy WebLinkAbout6118 RESOLUTION NO. 6,118
A RESOLUTION OPPOSING FEDERAL TAXATION OF
LOCAL INCOME FROM UTILITY SERVICES.
WHEREAS, in a private letter ruling, the IRS has
rules that State and local governments must pay federal
income taxes on income from "nonessential"services, and
WHEREAS, the ruling states that nonessential services
include the furnishing of utility services such as water,
electricity, and telephone services to the general public,
and
WHEREAS, the ruling raises the potential for considerable
tax liability for local governments.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. The Board of Directors hereby oppose the
taxation imposed by the IRS private letter ruling #7904006 .
SECTION 2 . The Board of Directors hereby urges that
the Arkansas Congressional delegation oppose any legislation
implementing the ruling.
SECTION 3 . This resolution shall be in full force and
effect from and after its adoption.
ADOPTED: April 3, 1979
ATTEST:
APPROVED: 0.4,
City Clerk Mayor