Title: No Tax Breaks for Sanctuary Cities Act
Policy area: Taxation

Summary:
No Tax Breaks for Sanctuary Cities Act
This bill denies a tax exclusion for the interest on bonds issued by sanctuary jurisdictions. A sanctuary jurisdiction is a governmental entity that has a statute in effect that restricts cooperation with the federal government regarding the citizenship or immigration status of any individual or that prohibits compliance with a request by the Department of Homeland Security with a detainer for, or notification about the release of, an individual.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 894 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 894

   To amend the Internal Revenue Code of 1986 to deny the tax exempt 
          status for bonds issued by sanctuary jurisdictions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 5, 2021

Mr. Rosendale (for himself, Mr. Gosar, Mr. Duncan, Mr. Weber of Texas, 
 Mr. Harris, Mr. Roy, Mr. Norman, Mr. Clyde, Mr. Moore of Alabama, Mr. 
Hice of Georgia, Mr. Gohmert, Mrs. Greene of Georgia, Mr. LaMalfa, Mr. 
 Mooney, Mr. Good of Virginia, Mr. Gibbs, Mr. Jackson, Mr. Perry, and 
 Mr. Steube) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to deny the tax exempt 
          status for bonds issued by sanctuary jurisdictions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Tax Breaks for Sanctuary Cities 
Act''.

SEC. 2. DENIAL OF TAX EXEMPT STATUS FOR BONDS ISSUED BY SANCTUARY 
              JURISDICTIONS.

    (a) In General.--Subsection (b) of section 103 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following:
            ``(4) Bond issued by sanctuary jurisdiction.--Any bond that 
        is issued by a sanctuary jurisdiction.''.
    (b) Sanctuary Jurisdiction Defined.--Section 103(c) of such Code is 
amended by adding at the end the following:
            ``(3) Sanctuary jurisdiction.--The term `sanctuary 
        jurisdiction' means a State or political subdivision of a State 
        that has in effect a statute, ordinance, policy, or practice 
        that prohibits or restricts any government entity or official 
        from--
                    ``(A) sending, receiving, maintaining, or 
                exchanging with any Federal, State, or local government 
                entity information regarding the citizenship or 
                immigration status (lawful or unlawful) of any 
                individual, or
                    ``(B) complying with a request lawfully made by the 
                Department of Homeland Security under section 236 or 
                287 of the Immigration and Nationality Act (8 U.S.C. 
                1226 and 1357) to comply with a detainer for, or notify 
                about the release of, an individual.''.
    (c) Effective Date.--The amendments made by this section shall 
apply in taxable years ending after the date of the enactment of this 
Act to any obligation issued after the date of the enactment of this 
Act.
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