BILL NUMBER: AJR 3	CHAPTERED
	BILL TEXT

	RESOLUTION CHAPTER  71
	FILED WITH SECRETARY OF STATE  AUGUST 22, 2011
	ADOPTED IN SENATE  JULY 14, 2011
	ADOPTED IN ASSEMBLY  AUGUST 15, 2011
	AMENDED IN SENATE  JULY 6, 2011
	AMENDED IN ASSEMBLY  APRIL 14, 2011
	AMENDED IN ASSEMBLY  APRIL 11, 2011

INTRODUCED BY   Assembly Member Dickinson
   (Coauthors: Assembly Members Achadjian, Allen, Ammiano, Atkins,
Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Campos, Carter, Cedillo, Chesbro, Cook, Davis,
Donnelly, Eng, Fletcher, Fong, Fuentes, Furutani, Gatto, Gordon,
Hagman, Hall, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman,
Jeffries, Lara, Bonnie Lowenthal, Ma, Mansoor, Mitchell, Monning,
Nestande, Nielsen, Norby, Pan, Perea, John A. Pérez, V. Manuel Pérez,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wieckowski, and
Yamada)

                        FEBRUARY 1, 2011

   Relative to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AJR 3, Dickinson. Federal taxation.
   This measure would urge Congress to extend the alternative minimum
tax holiday for private activity bonds.



   WHEREAS, The federal Revenue and Expenditure Control Act of 1968
classified debt issued for publicly owned airports as tax-exempt
private activity bonds; and
   WHEREAS, The federal Tax Reform Act of 1986 required taxpayers to
include interest income from private activity bonds for purposes of
the alternative minimum tax; and
   WHEREAS, The application of the alternative minimum tax within the
bond marketplace results in investors requiring higher interest rate
premiums when airports bring debt issues to market; and
   WHEREAS, Airport bonds must typically carry interest rates 1.5
percent higher than nontaxable bonds, costing $20 million in
increased financing costs for a $250 million airport project; and
   WHEREAS, Congress enacted an alternative minimum tax holiday for
private activity bonds resulting in increased levels of capital
projects at airports nationwide; and
   WHEREAS, Many airport capital construction projects address a
combination of safety, security, and capacity requirements and will
improve the efficiency of airport operations; and
   WHEREAS, California airports are currently investing approximately
$2 billion in capital construction projects; and
   WHEREAS, Capital investments at California airports are generating
hundreds of construction and permanent employment opportunities;
now, therefore, be it
   Resolved by the Assembly and the Senate of the State of
California, jointly, That the Legislature respectfully urges Congress
to extend the alternative minimum tax holiday for private activity
bonds to maintain strong capital investments at California airports;
and be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, to the Speaker of the House of Representatives, to the
Majority Leader of the Senate, and to each Senator and Representative
from California in the Congress of the United States.