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
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'"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
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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
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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 �
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e Exec. Vice Fresiderrt ~�--•---� �
Mr. Patrick Heal y, ,�`__�
I4atione�l Lesgue of Citie�, �`~"��''
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City BuildiAg - lE>12 K StY'eet' N. W.� '�,�`�..
Washingt4n, D. C. 20�Of. �-f�-��,,,. ,.�
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De+�r Sir: '� �
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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 � � �
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�.--__.. �`�..\_._ _--%,% Yexy tru]y yours,
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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
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