PRIA Logo™
119-hr-1879119th CongressWALLET

No Tax Breaks for Sanctuary Cities Act

Sponsored By: Representative Mace, Nancy [R-SC-1]

Introduced

Summary

Ties federal tax breaks for municipal bonds to local immigration-enforcement cooperation. It denies federal tax-exempt status to bonds issued by places defined as "sanctuary jurisdictions" when those places bar sharing citizenship or immigration-status information or refuse certain detainer requests under the Immigration and Nationality Act.

Show full summary
  • State and local governments labeled as "sanctuary jurisdictions" would see bonds issued after enactment become ineligible for the usual federal tax-exempt treatment under the amended section 103(b). Determination is made on the bond issuance date.
  • Investors who buy those affected municipal bonds would not receive the federal tax exemption on interest from those new issues, changing the tax profile of those investments.
  • The Secretary of the Treasury, after consulting the Department of Homeland Security, must publish a list identifying sanctuary jurisdictions within 180 days and update it annually. The changes apply to obligations issued after enactment and to taxable years ending after enactment.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Taxes on bonds from sanctuary cities

If enacted, interest on bonds issued by “sanctuary” jurisdictions would no longer be tax-free. This would apply only to bonds issued after enactment, and to taxable years ending after enactment. A jurisdiction counts as “sanctuary” if it limits sharing immigration-status information, or limits honoring DHS detainer or release-notice requests. Treasury, after consulting Homeland Security, would publish the list within 180 days and update it each year. Status would be measured on the bond’s issue date; investors could owe tax on interest, and issuers could face higher borrowing costs.

Sponsors & CoSponsors

Sponsor

Mace, Nancy [R-SC-1]

SC • R

Cosponsors

  • Rep. Gill, Brandon [R-TX-26]

    TX • R

    Sponsored 3/5/2025

  • Rep. Moore, Barry [R-AL-1]

    AL • R

    Sponsored 3/5/2025

  • Rep. Perry, Scott [R-PA-10]

    PA • R

    Sponsored 3/5/2025

  • Rep. Clyde, Andrew S. [R-GA-9]

    GA • R

    Sponsored 3/5/2025

  • Rep. Mast, Brian J. [R-FL-21]

    FL • R

    Sponsored 3/5/2025

  • Rep. McDowell, Addison P. [R-NC-6]

    NC • R

    Sponsored 3/5/2025

  • Rep. Harris, Andy [R-MD-1]

    MD • R

    Sponsored 3/5/2025

  • Rep. Burchett, Tim [R-TN-2]

    TN • R

    Sponsored 3/5/2025

  • Rep. Rulli, Michael A. [R-OH-6]

    OH • R

    Sponsored 3/5/2025

  • Rep. Nehls, Troy E. [R-TX-22]

    TX • R

    Sponsored 3/5/2025

  • Rep. Steube, W. Gregory [R-FL-17]

    FL • R

    Sponsored 3/5/2025

  • Rep. Gooden, Lance [R-TX-5]

    TX • R

    Sponsored 3/5/2025

  • Rep. Ogles, Andrew [R-TN-5]

    TN • R

    Sponsored 3/5/2025

  • Rep. Weber, Randy K. Sr. [R-TX-14]

    TX • R

    Sponsored 3/10/2025

  • Rep. Gosar, Paul A. [R-AZ-9]

    AZ • R

    Sponsored 3/31/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation