76th Annual  Meeting
The U.S. Conference of Mayors
76th Annual Meeting
June 20-24, 2008
Miami

2008 ADOPTED RESOLUTIONS

MOBILE WORKFORCE STATE INCOME TAX FAIRNESS AND SIMPLIFICATION ACT

WHEREAS, at a time when local governments throughout the nation are experiencing a reduction in revenues due to the down turn in the economy fueled primarily by rising energy prices and the home mortgage foreclosure crisis; and

WHEREAS, the Mobile Workforce State Income Tax Fairness and Simplification Act was introduce in the House of Representatives in August 2007 and is currently pending subcommittee action; and

WHEREAS, the proposed legislation would prohibit state and local governments from taxing the income of non-resident workers performing duties within their borders for 60 days or less; and

WHEREAS, the House Subcommittee on Commercial and Administrative Law held hearings on the proposed legislation but did not invite The U.S. Conference of Mayors or any local group to testify on behalf of local elected officials to explain how the legislation would impact local revenues; and

WHEREAS, according to the Internal Revenue Service 17 states have cities and/or counties that levy taxes on mobile workers and over 600 cities and political subdivisions would be negatively affected by passage of this legislation resulting in hundreds of millions in lost revenue; and

WHEREAS, legislation preempting state and local taxing authority would curtail their ability to collect taxes and thereby infringing upon their ability to raise the necessary revenues to support their infrastructure and provide public safety and other critical services to support the well being of workers and city residents; and

WHEREAS, many cities that do not currently levy an earnings or income tax on non-resident workers do not want to have that option foreclosed in the future, considering the fact that most states have granted local governments very limited taxing authority; and

NOW, THEREFORE, BE IT RESOLVED that The U.S. Conference of Mayors opposes any legislation that would preempt state and local governments’ authority to levy earnings and income taxes on mobile workers and urges all members of Congress to oppose any efforts to pass such legislation.