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Legislation
NACCTFO IS ALWAYS LOOKING FOR SPONSORS ON CURRENT LEGISLATION;
contact info@NACCTFO.org for more information.


Current Issues


3% Withholding Repealed: President Signs Repeal on November 21st

NACo announces that after years of advocacy to repeal the onerous unfunded mandate known as 3% withholding, the ultimate goal of full repeal has been signed into law. The final version of HR 674 included full repeal of the 3% withholding, language modifying the income definition for determination of eligibility for exchange subsidies under the health reform law and provisions that provide tax credits for businesses hiring veterans.  NACo would like to thank all members as this victory would not be possible without your support and efforts over the years!
Added November 2011

The Senate and House have both passed legislation to repeal the 3% withholding mandate which required state and local governments to withhold 3% from payments to vendors for goods and services and send it to the IRS.  The bill is now headed back to the House where it is expected to pass as amended by the Senate.  Read the NACo's News Release which announces the repeal progress.
Added November 2011

Final regulations have been released on 3% Withholding by the IRS. Additionally, compliance has been delayed until January 1, 2013. Read more in NACo's County News (pg. 1).
Added May 2011

Read the latest article on the 3% Withholding Repeal efforts. Renewed interested has spurred among some members of Congress. Article found in NACo's County News (pg. 2).

Updated NACo Fact Sheet regarding position on 3% Withholding Tax on County Purchases.  NACo continues efforts to get a full repeal of this requirement.
Added February 2011


Protect State and Local Taxing Authority Over Online Travel Companies (OTCs)

Updated NACo Fact Sheet.
Added February 2011

NACo continues to oppose legislative initiatives that would preempt state and local taxing authority over online travel companies.  Resources for more information: NACo Fact Sheet and article from the Center on Budget and Policy Priorities.
Added November 24, 2009

Other Legislative Issues of Concern to NACCTFO Members


Red Flags Rule Compliance Delayed Again
June 1st was to be the date the Federal Trade Commission (FTC) was going to being enforcing its Red Flags Rule, however the date has been moved back to December 31st. Read more about the decision to delay compliance.  

Who does this impact and what needs to be done to be in compliance? Check out the FTC's website for tips and resources on how to prepare: Fighting Fraud with the Red Flags Rule.
Updated May 28, 2010.

Read NACo's update, as seen in the December 14, 2009 edition of County News (pg. 1), on the status of the "Red Flag Rule" which requires creditors, including local governments, to adopt a written Identity Theft Prevention Program geared toward detecting and preventing identity theft. The rule has been delayed from enforcement until June 1, 2010.
Added February 2010.

Proposed rule changes to SEC Rule 2a-7
NACCTFO signs on to comments submitted to the SEC by the national organizations regarding money market funds and muni bond credit ratings.  This issue was adopted in July as a part of NACo's 2009-2010 FIGA Resolutions (pg. 4).
Added September 2009

Repeal of 3% Withholding: H.R. 275, S. 292 Efforts Continue to Repeal the 3 Percent Withholding Requirement Legislation has been introduced in both the House and Senate that would repeal the 3 percent withholding requirement on vendor payments for goods and services. The House bill (H.R. 275), sponsored by Rep. Kendrick Meek (D-Fla.), currently has 109 cosponsors, while the Senate bill (S. 292), has 11 cosponsors. A provision in the American Recovery and Reinvestment Act pushed back the effective date of the requirement to Jan. 1, 2012 overriding House-passed language supporting repeal. Earlier this year, NACo provided written and oral testimony to the Internal Revenue Service voicing opposition in response to its proposed regulations implementing the withholding requirement.
As seen in NACo's County News, September 7, 2009 edition (pg. 11).
Added October 2009.

NACCTFO is still urging support of this important initiative. Both bills were introduced again this January and are seeking co-sponsors. This issue is still a part of NACo's Top Legislative Priorities. Read more about the bills and their status from NACo. 
Added April 9, 2009

3% Withholding: NACCTFO Represented in Washington, DC
On April 19th, President Barbara Ford-Coates was invited to testify on behalf of NACCTFO and NACo on the proposal to expand the IRS offset program to include county tax debts, and weigh in on the 3% withholding tax issue (the proposed property tax reporting requirement and related ‘tax gap’ issues).  This testimony was given before the House Committee on Government Oversight and Reform, Subcommittee on Government Management, Organization and Procurement.  Also invited to testify were Oklahoma City Mayor Mick Cornett and Arlington County Deputy Treasurer for Litigation Patricia Weth.  Read NACo's Official Press Release and President Ford-Coates' Testimony.

Click on image to see a larger picture.

President Barbara Ford-Coates & Alysoun McLaughlin, NACo Associate Legislative Director & Liaison

Mayor Mick Cornett, President Barbara Ford-Coates & Deputy Treasurer for Litigation Patricia Weth seated before the Committee (L to R)

Bankruptcy Legislation Read about NACCTFO's involvement in Bankruptcy Code reform August, 1998.

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