04/08/19 -- HB 1061 -- Specify that expenditures of bond funds by Port Authorities are tax exempt
HB 1061 introduced by Representative Jon Patterson (Republican - District 30) specifies that when a tax exempt Port Authority issues bonds, the proceeds from those bonds can be used to make purchases in a tax exempt fashion. I am very suspicious of the concept of Port Authorities, and am nowhere near convinced that there is a need for them to exist. However they do, and for better or for worse are currently tax exempt. Since there is apparently confusion in the existing statute regarding if that tax exempt status is preserved or not when bond proceeds are involved, it seems reasonable that we clarify things. As a practical matter, since Port Authorities have the ability to levy taxes upon voter approval, if we were to declare that they must pay taxes when making purchases with bond proceeds, the Port Authorities would almost certainly just propose a new tax increase to pass along the cost to the populous. I'm obviously not in favor of that, so I voted in favor of this bill.