“To amend the Internal Revenue Code of 1986 to deny the tax exempt status for bonds issued by sanctuary jurisdictions.”
No CRS summary available for this bill.
This section amends IRC §103 to (1) deny tax-exempt status to any bond issued by a sanctuary jurisdiction (as determined on the date of issuance); (2) define a sanctuary jurisdiction as a state or political subdivision with in effect a statute, ordinance, policy, or practice that prohibits or restricts any government entity or official from sharing citizenship or immigration status information with federal, state, or local entities or from complying with a DHS request under INA §236 or §287 (8 U.S.C. §§1226, 1357) regarding a detainer for or notification of release of an individual; (3) require the Secretary of the Treasury, after consultation with the Secretary of Homeland Security, to publish a list of sanctuary jurisdictions within 180 days of enactment and annually thereafter; and (4) apply these changes to obligations issued after the date of enactment (for taxable years ending after such date). (As background, IRC §103 generally excludes from gross income the interest on state and local government bonds. Thus, affected jurisdictions must issue taxable bonds, increasing their borrowing costs.)