1988-055
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 88-55
A RESOLUTION IN SUPPORT OF CORRECTING THE REQUIREMENT OF TAXATION
OF STATE AND LOCAL GOVERNMENT EMPLOYEE BENEFITS
WHEREAS, the U.S. Department of Treasury continues in its
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 disability 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 Matsui (D-CA) has
introduced H.R. 4221 to correct this situation; and
WHEREAS, it is the desire of the City Council of the City of
Hopkins to hold down costs to the public sector, its employees,
and taxpayers whenever possible.
NOW, THERFORE, BE IT RESOLVED by the City Council of the
City of Hopkins, 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.
Adopted by the City Council of the City of Hopkins this 21st day
of June, 1988.
ATTEST: ~
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~ c1ty Clerk