HomeMy WebLinkAboutResolution - 88-135 - Resolution in Support of Correcting the Requirement of Taxation of State and Local Government Employee Benefits - CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 88- 135
RESOLUTION III SUPPPORT OF CORRECTING THE REQUIREMENT OF
TAXATION OF STATE AND LOCAL GOVERNMENT EMPLOYEE BENEFITS
WHEREAS, the U. S . Department of Treasury continues in its unilateral
quest to tax certain public employee fringe benefits ; and
WHEREAS, public workers will be forced to pay annual income taxes on
the value of accumulated annual and sick leave, death and disabliity benefits,
and severance and compensatory pay for tax year 1988 and beyond ; and
WHEREAS, this tax will be paid on benefits which employees have not
yet received and may never receive; the taxation of these benefits at accrual
instead of when the benefit is actually used by the employee will create
additional financial and record keeping burdens on political subdivisions and
their employees; and
WHEREAS, U. S. Representative Robert Natsui ID-CA) has introduced H.R.
4221 to correct this situation; and
WHEREAS, it is the desire of the City Council of the City of Eden
Prairie to hold down costs to the public sector, its employees , and taxpayers
whenever possible.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eden Prairie,
Minnesota, that members of the U.S. Congress are urged to eliminate the
requirement of taxation of state and local government employee benefits by
supporting H . R. 4221 or any other similar legislation.
PASS AND ADOPTED BY THE EDEN PRAIRIE CITY COUNCIL THIS 5th DAY OF
July 1988.
Mary D. eter n , , ayor
ar J. Jul it onager
ATTEST: SEAL
o ne, C ity C 1er