Counties would have paid an extra $9 billion in increased interest costs if municipal bonds had been taxable and $3.2 billion if a 28% cap on the value of tax exemption had been imposed during the last 15 years, according to a report by the National Association of Counties.

The 32-page report, “Municipal Bonds Build America: A County Perspective on Changing the Tax-Exempt Status of Municipal Bond Interest,” published by NACo late last week, estimated the cost of a complete repeal of the tax exemption and a proposed 28% cap on 3,069 counties.

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