HomeMy WebLinkAbout1981-240 CCR Member Gene Lhotka introduced the following resolution
III and moved its adoption:
RESOLUTION NO. 81 -240
RESOLUTION URGING THE CONTINUANCE OF TAX EXEMPT STATUS FOR MINNESOTA
FIREFIGHTER AND POLICE RELIEF ASSOCIATIONS
WHEREAS, the Federal Internal Revenue Service, based on ruling 81 -58,
will rescind the tax exempt status of all those Minnesota Firefighter and Police
Relief Associations which are now exempt under Internal Revenue Code Section SOL
(c) (4), beginning with calendar year 1982; and
WHEREAS, the Internal Revenue Service takes the position that 501 (c) (4)
is an inappropriate classification for exception for such relief associations,
since they feel that benefits to the general public from operation of those
associations are secondary to the purpose of providing benefits to the individual
members; but
WHEREAS, the effect of taxability on these associations would be that any
taxes paid from the special funds of the associations would demish special fund
assets needed to fund promised pensions and other benefits and would thus directly
add to fund requirements to be met out of the state Police and Fire Aid program and
local tax levies for the special fund of each association:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the City of Brooklyn
Center to urgently request that federal legislation be passed which would authorize
exemption of these organizations in a manner similar to that provided for teachers'
retirement under Section 501 (c) (11); and
BE IT FURTHER RESOLVED that this resolution be sent to the Minnesota
Congressional delegation, area state legislators, and the League of Minnesota Cities.
November 23, 1981
-2
Date Mayor
ATTEST:
'Clem
The motion for the adoption of the foregoing resolution was duly seconded by
member Bill Fignar and upon vote being taken thereon, the following
voted in favor thereof: Dean Nyquist, Tony Kuefler, Bill Fignar, Gene Lhotka,
and Celia Scott;
and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted.
III