Kentucky Treasurer Todd Hollenbach on Monday was the invited to talk with members of the Purchase Area Development District in Mayfield where he discussed the importance of tax-exempt municipal bonds.
Hollenbach stated several proposals to eliminate or reduce the exemption are currently under consideration by Congress as part of the budget process.
Hollenbach told the group that while the measures may be well-intended, he believes they are misguided and should be reconsidered because eliminating the tax-exempt status on municipal bonds would place a great financial burden on local governments.
Since 1913, tax-exempt municipal bonds have been a primary source of revenue for municipalities to improve roads, schools, and create economic growth.
Hollenbach recently contacted Kentucky’s six member congressional delegation asking them to sign a letter to U.S. House leadership in support of maintaining municipal bond tax exemption.
Hollenbach says currently, 140 congressional representatives have signed the letter.
The Purchase Area Development District serves Ballard, Carlisle, Hickman, Fulton, McCracken, Graves, Marshall, and Calloway Counties in western Kentucky.