Gone tomorrow? The President signed the American Taxpayer Relief Act on January 3, 2013, thus averting the fiscal cliff crisis… for now. In particular, the tax-exemption provided for the interest on municipal bonds was spared, but during the fiscal cliff negotiations over the last two months, both sides proposed limits on the exclusion of interest on state and local bonds. Those proposals will almost surely resurface as part of the next round of negotiations over the debt limit, sequestration and funding the federal government for the remainder of fiscal 2013. Those most at risk as a result of such threats are state and local governments who rely on low interest rate financing to meet their capital and operating needs each year. The National Association of Bond Lawyers has prepared a helpful white paper and a summary about the importance of preserving the tax-exempt status of interest on state and local bonds. We urge you to contact your local government officials, as well as members of Congress, about this vital issue.