Congressional leaders hope to move forward with hearings and tax reform legislation in September, with efforts continuing through the fall. Tax reform could have a major impact on counties, as both the tax-exempt status of municipal bonds and the deduction for state and local taxes (SALT) could be eliminated. Counties use both of these tools to finance infrastructure projects, local law enforcement, emergency services, education costs and many other services. Changes to the existing tax code could alter counties’ ability to support and provide services for our residents.
State and local governments provide critical services with revenue generated through state and local taxes, including:
NACo will continue to monitor tax reform efforts and advocate for key county priorities as the process moves forward. In the meantime, this page provides a number of resources for you to use as you talk to your members of Congress about these issues.