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247493 ORIOINA4%�+CITY CLBRK ���r�} ( , � � � CITY OF ST. PAUL COUNCIL OFFICE OF THE CITY CLERK FILE . ` N L �S LUTION—GENERAL FORM PRESENTED BY COMMISSIONE DAT� f l /. � RE OLVED� That the Council of the City of Saint Paul hereby takes cognizance of the pendency of certain proposed legislation now before the Congress of the United States eliminating the tax exempt status of state and local govern- ments with respect to air travel on official business , restor- ing the old tax on transportation of air freight without restoring the old exemption which acco mpanied it, and impos- ing a new registration fee on aircraft without the traditional exemption for states and local governments, all embodied in H.R. 14465 and S. 3108; and RESOLVED� That the Council of the City of Saint Paul , while supporting the airport improvements features of said legislation, hereby expresses its firm opposition to those elements of said legislation removing the tax exempt status of city, county, and state governmental units; and RESOLVED� FURTHER� That the City Clerk is hereby directed to forward copies of this resolution to Senators MeCarthy and Mondale, Representative Karth and the other members of the Minnesota House Delegation, as well as to Daniel B. Goldberg, counsel fo r the Municipal Finance Officers Association. FQ� AP RDYE� � 1 Asst Corpaation Cour�l F E� 17 1970 COUNCILMEN Adopted by the Council 19— Yeas Nays Carl.son F E B 17 1970 Dalglish .�f Approved 19—_ Meredith ' Tn Favor Peterson ' Sprafka � Mayor Tedeaco A gainst Mr. President, Byrne pUBLISHED FEB 211970 O a.��ry( � � CLFARK MnCGF+tEGOR COMMITTEE ON'THE JUDICIARY THIRD DISTRICT.MINNESOTA , , � DISTRICT OFFICE: WASHINGTON OFFICE: 120 U.S.CouRniousE .409 CANNON OFFICE BUILDINfi � MINNEAPOLIS,MINNESOTA PHONE:��28�, �o�gre�� ot t�je �iteb �ita�te� NEW PHONE:725-2173 AREA CODE YOZ t t_ AREA CODE B7 Z ADMINISTRATIVEASSISTANT: �OU.NE O` �C��LE.VE•1�1��IVL� DISTRICTREPRESENTATIVE: DAVID N.KR065ENCi (��Q'�f�ry���',��n��� 20515 MISS MARYELLEN SMITH vw .�.�J b rr EXECUTIVE ASSI3TANT: RICHARD D.WILLOW February 27, 1970 Mr. Harry E. Marshall City Clerk City of St. Paul 386 City Hall St. Paul, Minnesota 55102 Dear Mr. Marshall: Thank you for your letter concerning the Aviation Facilities Expension Act of 1969, H.R. 14465. The House version of this bill was considered under "closed rule" and we were unable to alter its provisions during the vote. The Senate version of this bill eliminates the eight percent ticket tax but substitutes a seven and one-half percent gross revenue tax. The exemption allowed states, their sub- divisions and the educational institutions is eliminated in the Senate version also. I am urging my colleagues in the Senate to look closely at this damaging provision before they vote. I agree that this measure would constitute a drain on the resources of our educational institutions and I am working to secure its elimination. Thank you for your concern. Sincerely, ��� ., Congressman Clark M cGregor CM:dm Dictated By The Congress� And "3�Rn'd �r: His Absb(I�q DONALD M:FRASER FOREIGN AFFAIRS COMMITTEE 57tt D�srwcr,M�rweso76. � SU9COMMITTEE3: ' STATE DEPARTMENT ORGANIZATION 3S'L HOUSE OFFICE BUILDIN6 • ��7� �o�gre�� of t�je �t�f te�► �tate� �D FOREIGN�PERATIONS �NTERNATIONAL ORGANIZATIONS AND MOVEMENTB DALE MACIVER ADMINISTRATIVE ASSISTANT �ou�e of �.e�regentatibeg NATIONAL SECURITY POLICY AND SCIENTIFIC DEVELOPMENTS ��l�g����•�• 20515 DISTRICT OF COLUMBIA COM M ITTEE February 26, 1970 Mr. Harry E. Marshall City Clerk Bureau of Records 385 City Hall St. Paul, Minnesota 55102 Dear Mr. Marshall: Thanks for sending to me the resolution that was adopted by the St. Paul City Council regarding legislation to remove tax exempt status of city, county, and state governmental units with regard to air travel. I appreciate knowing of the views of the St. Paul Council on this issue. With best wishes. Si y, � Donald M. Fraser JOSEf�H E:KARTH COMyIiTEE ON AptD�cietcr,�vLtinESOrn SCIENCE AND pSTRONAUTICS • SU9COMMIiTEE ON 2132 F�AYBORN HOUSE OFFICE NASA OVERSIGHT ` C/�Pi�$63� �ongre�� of �je �niteD �tate� CHAIRNAfl,SUBCOYN1778E ON SPACE SCIENCE AND RdBERY E HESS �OU�E Ot �P�rC$trit�t�bE� �P��CATIONS ADMItUSiQA71YE ASlISTANT �B1j11igt01T,�.@C. 20515 COMMrt7EE OX MERCHANT MARINE AND FISHERIES SUBCOMMITiBE ON FISHERIES AND WILDLIFE February 24, 1970 CONSERVATION SOBfAMMIttEE ON OCEANOGRAPHY SUBCOMMIttEE OA PANAMA CANAL Mr. Harry E. Marshall City Clerk City of Saint Paul Bureau of Records 386 City Hall Saint Paul, Minnesota 55102 Dear Mr. Marshall: Thank you for sending along copies of the two resolutions adopted by the Saint Paul City Council expressing opposition to legislation removing the tax exempt status of city, county and state governmental units with respect to air travel and secondly, endorsing the plans of the U. S. Army Corps of Engineers. I appreciate your writing and giving me the benefit of your views on th�se important matters. Si.ncerely yours, . Jose h E. Karth Mem er of Congress JEK/bl _ , JOHN SPARKMAN�ALA.,CHAIRMAN �LLIAM PROX'RAIRE.WI3. WALUICE R.BENNETT.UTAH HARRISON A.WtLL1AM3.JR..NJ. JOHN G.TOWER.TIX. EDMYND S.MUSKIE.MAIN6 EDWARD W.BROOKE�MASS. TNOMAS J.MCINTYRE.N.X, CHARLES H.PERCY,ILL. WALTER P.MONDALE.MINN. CHARLES 6.OOODHLL�N.Y. •ERNEST F.HOLLIN65,S.C. ROBERT W.PAGKWOOD,ORE6. f�Cr��f eb ..`�f af es ,�i¢�a�¢ HAROLD E.HU6NE5,IOWA ALAN CRANSTON,CALIF. COMMITTEE ON BANKING AND CURRENCY DUDLEY L.O'NEAL�JR. STAPF CIRECTOR AND 6ENERAL COUNSEL WASHINGTON.D.C. ZOS�O . '��.rc'�: >, i�70 ,Ix'. .:.�3,Y'1"j/ i',. ��ciY°�ti�.i� 1i"'1.C(? �� 't��f' �?t'J r.t.F?"ri!! i�'t;�� 7;f �'t,17.?t ''�F3.li.i. ?�� �;?�jt _i�.l� r�'Tlt. .f f3,l.i�. � i'ill"1:"1l SOt.a, j�1.�� ��,,,y, r�r,. '.-'�.r.si'2:;... . '"1_�ank �rou verg �?ucn for your recent ^�essa.�;e in sup��ort c�f a tax e:�e�ptior ror state antj. �ac:�.;_ �overn.�.ent ;;rader. tj:e ,�irr,ort a?1d airwaJ:, :ill.. �".:: �'Otl 'Q�t�r 1�:Ilt??d� tait? ;`P_icl'tE r??t"l.I'1CF'. !�;4"""1_'_�f.P_E? ::�U�:;t'.i'�UtCi� <�, f'..^�.:Y.. U't"� �:.1.X'.11112 l"P.JE'iill��+ fOT ti�'le 't].CiCEt t�.-X �Y'O'2: .vi:.1 C�i S�c'i.�2 �7S1C� .LOC2.1 �O`J'PP?'if!1PI'i�:S i!3(7. wP..C�T� 2XC�T'i�t . t�C(;OY'G�1T;�Z�d � t�le ".Oi;i— 1��ttP� ���i�? rc�t r:el�e:�F: .+t T�rrzs appro�.riate nr ::� irr;:�-;1� �t�� con- t.1211.3.P �3:C?�}� n02'i»'i of ta.x P�{QT,'i7tt'.�:1. �"'!F? '_''PC�E'i'�.1 �QJP_Y'T"�•i�P;'`it. c1.L°i0 C�c1.StyS tPJ �'�3.V� ca.'1;J �=j.:?. E:XE?',':ly)�7 pT;. li?1�E??" �;'t]f. ��J"':�^:11�'.tE'c��S �',:'Qi_10S8„A�. i"}�E'. :�t'it�'�2 P.CC�.'i)�?�. �I�C T�7.'.18,Yi��F' :;OI"tITi��;t'.c�.E' �`.'� '1i'Y'iY`O?3.�.''"i. T �.'�3.5 €;1.%LC� t0 'YIZ�%L t,'it� ClE'.'t�'"7_f. +7.° ��QUY' Vi.P.'.•iS O': tI'�1S i.":<Lt.tF?r'. -�'t n ,�*�.?w,, .re�ard�^� �, ,ncf�rF�1.:�-, �i�,L^`�`^i�- t ' � . ;'a.;.tPr ,,,. •,TOnda.l e ANCHER.NELSEN COMMI7TEES: , HUTCNINSON,MINNESOTA �NTLRSTATE AND FOREI6N COMMERCE ` � DISTRICT OP COWMBIA � 'ZD DISTRICT CWNTIES: � BLUE EARTH MURRAY �o�gre�� o� t�je ��iteb �tacte� OFFICE: BROWN NICOLLET ROOM 2929 CARVER NOBLES COTTONWOOD PIPESTONE RAYBURN OFFIGE BUILDING FARIBAULT ROCK �ouge of �.e�re�entatibeg TELEPHONE:22D-2472 JACKSON SCOTT LESUEUR SIBLEY MCLEOD WASECA �y�y��*y�yLO�' �715•(�• 20515 MARTIN WATONWAN µp �`}s� =�y �� March 5, 1970 Mr. Harry E. Marshall City Clerk Bureau of Records 386 City Hall St. Paul, Minnesota 55102 Dear Mr. Marshall: Thank you for your letter concerning the bill, H.R. 14465, to provide for additional airport and airways facilities, and to provide for the taxes to pay for them. As you mentioned, the bill as reported out of the Senate Finance Committee removed the exemption from taxation of air fares presently given to certain public agencies. In response to your letter I contacted the Committee staff and learned that the Members voted to eliminate all exemptions in a move to provide equitable treatment for all individuals using the sirways. Although there was some sentiment for maintaining certain exemptions, the full Senate concurred with the Committee decision. The matter wi11 now probably be decided in a joint House-Senate conference committee, and when the conference report comes before the House of Representatives, I will keep your views in mind. Kindest regards. Sincerely yours Ancher Nelsen Member of Congress AN:sb • RUSSELL B.LON6.LA.,CHAIRMAN � I� ���� CLINTON P.ANDERSON.N.MIX. JOHN J.WILLIAMS,DEL. / ALBERT GORE.TENN. WALUICE F.BENNETT,UTAH HERMAN E.TALMADGE,GA. CARL T.CURTIB.NEBR. EUGENE J.MCCARTHY,MINN. EVERETT MCKINLEY DIRKSEN,ILL. VANCE HARTKE,IND. JACK MILLER.IOWA J.W.FULBRIGHT.ARK. LEN B.JORDAN.IDAHO �I C�rf ea .�f af.e� ,�e�af¢ ABRAHAM RIBICOFF,CONN. PAUL J.FANNIN,ARIZ. FRED R.HARRIS.OKLA. HARRY P.BYRD.�R.,vw. COMMITTEE ON FINANCE TOM VAII,CHIEFGOUNSEL WASHINGTON,D.C. �LOS�O March 25 , 1970 Mr. Harry E . r-iarshall City Clerk 386 City Hall St . Paul, Minnesota 55102 Dear Mr. b4arshall : I appreciate receiving a copy of the resolution adopted by the St. Paul City Council regarda�ng the exemption of state and local governments from taxes on air trave l. The Senate approved E�. R. 14465 , the Airport and Airways Development Act of 1970 , with amendments on February 26. Bef ore f inal passage, the Senate rejected the Stevens amendment which would have exempted aircraft owned by state and local �overnments or transportation furnished to government officials from taxation under the bill. The bill has now been sent to conference to resolve the differences between the House and Senate passed measures . �Vith best wishes. Sincerely yours , Euge J. �+ Carthy EJM:vw � _ ,. `� 1 � �- - '� � � � _ . � _ , � . " � C�FFi�'� �F ���' ,�� .�.,��� \+��V6ia�'���E.�.E�. - S�Iht�' PAUL �� ; `• MINNES�TA 55102 I C►9 'CiT�° i�l�l.L 1� JQSEPH J. MITCHELL �' "-' �,� ; �����-�L RICHARD F. SONNEN ClTY COMPTROLLER `'�----w`'' � °`:�,�.,,.�,. "`-`� DEPUTY CITY COh�!YTRQLLER --..,�_., „�,,.,�, February 9, 1970 Honorable Mayor, President . and Members of the City Council Gentlemen: The attached "Information Bulletin" from the Municipal Finance Officers Association h�s just reached my desk. It seems that we have just compk-�ed our successful figt7t to retain the "tax exempt" status of municipal bonds, and now this year the battle has just begun on a proposed tax on air transportation. House Bill HoR. 14465 and Senate Bill 5.3108, if adopted in its present form, will do the following: 1. Tax State and local government air travel on official business by eliminating the present exemption in Internal Revenue Code Section 4292. 2. Tax State and local governments by restoring the old tax on transportation of air freight (proposed Internal Revenue Code Section 4271) without restoring the old exemption cahich used to accompany it. 3. Tax State and local government by imposing a new registration fee onaircraft without the traditional exemption for states and local governments. riay 1 again recommena that all Minnesota members ot the .House and Senate, together with Mr. Daniel B. Goldberg, legal counsel for M.F.O.A. , be notified of appropriate Council action which you may accomplish by resolution. It is not the intention of M.F.O.A. to oppose airport improvements. Our only concern is to preserve the "tax exempt status of cities, counties and states in this matter. ' Respectfully submitted, ` ``'�,� �`�. \ , l�;��,:,�.`.t:;,��� JJM/dn � Josepli�J. Mitchell cc-C. Schleck City Compzroller I. Peterson � G�. .` „ ��'' ' '�-`w''r� ,..: ,_,. r ;� iJ�L�'; ,,�� �,.+-,iS� � ���� � _ ���� �,��.:,���r, j ,, .. �p �'-<,-�ty���,� .� .<. . . �;r kh I'�b• ?G,� �.�rPt? /W"'4`�'.',�_� � .,, � ,�'� i�tr. 1,�n3.el A. Kl.as ;,, ,;_ .__��`t Corporation ^u��nsei � . �� �� � � i �i12'���2 T1 t:r '' f � `� '\ . j 3y,��A �..1 l�• �,•,+\\1% J fP�/. �\ /� _-.._ �. � m�,� �i.t�� ';ouncil requ�b�'����.,y,o�i ��tv�� =� �e�c��.�a�zor c���+�e;y'W��€; '�k�e�.x orap�,fiX`�tt�n i � t. �� nn � ta c�Ql���+tion e1 `._ �„ ^.ar����s a�? cc��^ts��� ��a�;{.��at� a� G�t ��7t in �he �ttt�.ened i.':?"t;'�C'.!:' tl�'�'C°.�i Ylr" c'1 �J.y ',�°�'.1 £Li.r tY'f CT1Qrft1''�.a.�Y'e� �- \��� � i _ - .` �\� � �Je��y �rtt�_;�r your�p /'�� -- �._..r_ _�� f'�ff,� � � ° ` � t��� - r?.�;r �lE'�'k t�O f ng ��., ��, °�.. ----- _._.W.....�- � �-f � �� � 7 � a��b. 3.8, ��ro �� ; � i ' e Exec. Vice Fresiderrt ~�--•---� � Mr. Patrick Heal y, ,�`__� I4atione�l Lesgue of Citie�, �`~"��'' . City BuildiAg - lE>12 K StY'eet' N. W.� '�,�`�.. Washingt4n, D. C. 20�Of. �-f�-��,,,. ,.� '`� `� `i De+�r Sir: '� � r ,' % . �� Enelosed i� a aopy aR,,�,rea�3:u�ion o�' the Saint Paul City Cout�il' C. F. 247�93,�`�t�'d F'Cbrnary 1?, 1970� expreasing oppositioa ts>-i-�g��ta�i�,i. emov�i�g the tNC exempt �tatue cf city, coun�F,a�d a'F.�t��,.6 ��.1 u�ite with respect to sir trave��i embodied �,r�, H.��4�+65 and S. 3108. 4 � � � i + � � �, �i ; �.--__.. �`�..\_._ _--%,% Yexy tru]y yours, � ,, � _.__ � , .,--._; �_.___.�- %. ✓ l�rj� C� City Clerk AO�hp j ; , Also sen� o the fo,�'�:�iwing: �. ,,� .•`ti __ John Gunther;`�ec. Dir.,U.S. Conference of Ma.yors� �ity Bldg.-1612 K,St.N.W., Washingto�.� D. C. 20006 Daniel B. Goldberg, Counsel, Municipal Finance Offieers'Assn., Z313 E.60th.St., Chicago, I11.60E Hon. Eugene MeCarthy� U.S. Senator, Senate Office Bldg., Washington� D.C. Hon. Walter Mondale, U.S. Senator, Senate Office Bld�. Washin�ton, D.C. Hon. Jos. E. Karth� Repr. in Congress, House Office Bldg. Washington, D.C, Hono Donald Fraser, Repr. in Congres�, House OFfice Bldg., Washin,gton, D.C. Hon. John M. Blatnik, Repr. in Corigress, House Office B1dg. Washington, D.C. Hon. Ocl3.n Langen, Repr. in Coxlgress, House OFfice Bldg., Washington, D.C. Hon, Ancher Nelsen, Repr. in Congress, House Office Bldgo, Washington, D. C, Hon. John M. Zwach, Repr. in Congress, House Office Bldg., Washington, D. C. Hon. Albert H. Quie, Repr. in Congress, House Office Bldg., Washington, D. C. Hon. Clark MacGregor, Repr. in Congress �House 4Ffice Bldg., Washington� D.C. M i . . , - � MUiTICIP,4L FTNANCE QF'r,ICliRS ASSOCIATIC7T1 • 1313 E. 6Qth Street, Chicago, Illinois 60637 INFORMATIO'� BULI�,TIN February 3, 1970 To All State and Local Government Finance Officers MUST EV.E�i.Y TAX BILL ATTACK STATE AND LOCAL GOVE�T - PROPOSED P�rT TAX ON AIR TRANSPORTATION Tociay the Senate Finance Cotrunittee adopted a proposal of the House of Represer,ta- tives contained in H.R.14465 to tax State and local goverrnnents directly. The proposed tax is part of a Bill to fi.nance necessary airpo�t improvements, which are also proposed by a companion Senate Bill 5.3108. The tax proposal in the House Bill� concurred in by the Senate rinance Committee, wi11 do the following: � 1. Tax State and local government air travel on official business by eliminat- ing the present exemption in Internal Revenue Code Section 4292. 2. Tax State and local governments by restoring the old tax on transportation of air freight (proposed Interna�. Revenue Code Section 4271) without restoring the old exemption which used to accompar�y it. 3. Tax State and local goverrunent by imposing a n�w registration fee on aircraft � without the traditional exemption for states azr.� local governments. The organizations of State and local government officers which combisaed together in the successf�il. fight to retain the exemption of State and municipal bond interest are resolved to carry this fight to the floor of the Ser,ate. It is urged that you call, wire, or at least write your Senators at once to support an amendment which will re-establish the traditional exemption of State and local government from these air transportation taxes. The revenue from such taxes on State and local goverriment �•rould be miriuscule. The affront to constitutional principle is enormous. This wnuld be a tax paid by State dnci .�oc;ai �overrunerri;s ir� L[1G iii•sL ins�.ance ior tiie periorrna�ice ol i,iieir c�iiic:iai functions. If the right to do this is established, we must expect a renewed attack . or. all our ot;her irrumu�ities anci exeriptions, including the bond interest exemption. We hear much of the new "Federalism." It is supposed to mean an increasing respect for the part of State and local government in our Federal system. It is flatly contradicted by proposals to tax State and local governments in the performance of their official functions. There is no reason to precipitate this constitutional confrontation between the States and local governments and the Federal government. There is no reason to invite retaliatory State and local taxes on the Federal government: e.g. , state gasoline taxes� state motor vehicle registration taxes, even state and local real estate taxes to support fire� police� sanitation, and other muni dpal services. Do not be mislead by the Treasury' s effort to call this a "user tax" as distinguished from other taxes. The taxes which we do not impose on the Federal government could just as easily be called user taxes. And it is all too easy to relate any tax to a service received. The only safe principle in a federal system is for the Federal and State partners each to adopt a keep "hands off" approach when it comes to taxing each other. GFT IN TOtJCH WITH YOUR TWO SENATORS AT OIvTCE AI�?D DEMAND AMENDMENT OF THE AIRPORT AID LEGISLATION TO EXEP'IPT STATE AND LOCAL C,OVERNM�'NT FROM � THN� TAXES LISTED. Make sure your Senators tell you their position. To coordinate our efforts, please give the re�slts to Daniel B. Croldberg� who is Counsel on this matter for our Association. Mr. Goldberg can be reach�d at Room 1508, 111 Eigkath Avenue, New York, N. Y. 10011. I�UNICIPAL FI2dANCE OF�'IG'El� ASSOCIATION Ingrid Peterson Acting T:�:ecu�;ive Uirectar ..=°�„eie,..,,n4°.sr_—_w���.�^-t�_�� _._T.-....�r.wa..YP�:P�l:��.1��las F�rp!�. -.wa. ,;.S�,:w�.Se.A.�'.nwla�- -- -"'y.r..�� � :aMm.&�s�,•ar.�^. �..,,� �"�WFa�C.�c1�m�^+...-..esWYI�-�'AF . . .._ R,. .. . . a ..,;:��.�... ,_..,.�.:� 't=" _. ..__ _ " "-. _._ .-. .v.4 . . ,. »..._.. . .;:. ..�-. .,rc.���'.w .la.»...:�v.. "t�..��.x...