HomeMy WebLinkAboutBOCC Letter tax-exempt 4.14.25
Pitkin County | 530 E. Main Street | Aspen, CO 81611 | 970-920-5200
April 14, 2025
The Honorable Michael Bennett
261 Russell Senate Building
Washington, DC 20510
Email: hilary_henry@bennet.senate.gov
The Honorable John Hickenlooper
Hart Senate Building, Suite SH-316
120 Constitution Ave. NE
Washington DC 20510
Email: janeth_stancle@hickenlooper.senate.gov
The Honorable Jeff Hurd
1641 Longworth House Office
Washington, DC 20515
Email: Betsy.bair@mail.house.gov
Subject: Preserving Tax-Exempt Municipal Bonds
Dear Senator Bennett, Senator Hickenlooper, and Representative Hurd:
We write to ask for your support for the preservation of tax-exempt municipal bonds in upcoming legislation.
In communities across the country, the tax-exempt municipal bond has helped drive the local economy,
spurred job growth, funded critical infrastructure projects, and enhanced the quality of life of our constituents.
States, counties, and other local governmental entities have financed infrastructure and community
improvement projects utilizing tax-exempt municipal bonds for decades. Tax-exempt municipal bonds have
been the cornerstone of our local government financial systems since their inception in the Revenue Act of
1913. These bonds make borrowing cheaper for state and local governments to fund day-to-day obligations
and finance local capital projects such as building schools, hospitals, highways, sewer systems, or airports.
In addition to providing a funding source for local government projects, tax-exempt municipal bonds provide
a smart and reliable investment opportunity for individuals seeking steady income with tax advantages. The
interest earned from municipal bonds is exempt from federal income taxes, and often not taxed by state and
local governments, enhancing overall returns.
According to the U.S. Census Bureau, Construction Spending, December 2, 2024, states and local
governments are responsible for more than 90 percent of all public-sector construction spending, most of
which is funded through tax-exempt municipal bonds. Per the Government Finance Officers Association, the
elimination of the municipal bond tax-exemption would correspondingly raise borrowing costs $823.92
billion, a cost that would be passed onto everyday Americans, resulting in a $6,554.67 tax and a rate increase
for each American household over the next decade.
Pitkin County | 530 E. Main Street | Aspen, CO 81611 | 970-920-5200
Associations and constituents have expressed their concern that the elimination of the tax-exempt status of
municipal bonds would increase borrowing costs to fund projects, increase taxes and reduce services for
residents, and cause the delay or cancellation of projects, impacting public safety and impeding economic
growth.
Specifically, Pitkin County will be seeking the use of tax-exempt bonds for the expansion of our landfill as
well as the design and construction of a new Aspen/Pitkin County Airport terminal and associated facilities.
For an airport project of this magnitude, if borrowing rates go up by 200 basis points, it will severely hamper
our ability to fully develop this project. According to our municipal advisor, the impact of such an increase
would lower the proceeds from issuing Airport Revenue Bonds by approximately 26% depending upon debt
service coverage ratios and interest rates. For such a critical piece of infrastructure, this value loss would
have major consequences.
According to the National League of Cities (NLC), tax-exempt bonds have financed more than three quarters
of our nation’s infrastructure. Across the country, our communities depend on strong, substantive federal tax
policy for state and local governments to meet their capital needs. Since 1913, tax-exempt municipal bonds
have worked to help overcome the financial shortfalls of federal infrastructure spending and to address the
needs of our communities, from our largest metropolitan cities to our small rural towns across our country.
We urge your support in preserving the federal tax-exemption for municipal bonds, a critical tool that
enables state and local governments to fund essential infrastructure projects efficiently and affordably. It is
imperative that we recognize the profound benefits that tax-exempt municipal bonds provide to our
communities and constituents.
We look forward to working with you on this vital issue.
Sincerely,
Kelly McNicholas Kury
Chair
Pitkin County Board of Commissioners