R-60-090~~ d
RESOLUTION OPPOSING TREASURY'S PROPOSAL
TO TAX INTEREST ON MUNICIPAL BONDS IN
THE HANDS OF INSURANCE COMPANIES.
_ WHEREAS the United States Treasury Department has proposed to
promulgate regulations to implement the Life Insurance Company Income
Tax Act of 1959 so as to deny life insurance companies to constitutional
tax exemption of the interest on state and municipal bonds owned by them,
and,
WHEREAS the Constitution of the United States, as judicially con-
strued, has established the doctrine of reciprocal immunity of obligations
of federal, state and municipal obligations, and
WHEREAS, the City Council of the City of Clermont is opposed to
any and all attempts to tax state and municipal obligations,
NOW, THEREFORE, BE IT RESOLVED that the City of Clermont
hereby approves the written proposed regulation which was submitted to
the Under Secretary of the Treasury in the following language:
"Any interest which under Section 103 is excluded
from gross income shall be excluded from the com-
putation of any items of income or deduction of life
insurance companies under part one of sub-chapter L",
which sub-chapter exempts state and municipal obligations from taxation.
ADOPTED by the City Council of the City of Clermont, Lake County,
Florida, at its Adjourned Regular Meetin held on September 20, 1960.
City C1e