February 1, 1991
TO: MONEY MARKET MEMBERS - ONE PER COMPLEX NO. 2-91
RE: NEW HAMPSHIRE BANKING COMMISSIONER CALLS FOR TAX ON
MONEY MARKET FUNDS
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As indicated in the attached article, the Banking
Commissioner for the state of New Hampshire has called for a tax
on money market funds in order to raise revenue and to "create a
level playing field" for financial institutions. The tax would
be, according to the article, "based on the overall involvement
of the funds in the state". (Presumably this means the holdings
of New Hampshire shareholders.) To our knowledge, no bill has
been introduced as of this date to impose such a tax.
There are also reports that legislation to impose a similar
tax may be introduced in Rhode Island, perhaps as a means to pay
off failed credit unions in that state. However, again, no such
bill has been introduced as of yet.
The Institute is continuing to monitor the situation in
both states. We will keep you informed of developments.
Craig S. Tyle
Associate General Counsel
Attachment