GFOA, NABL Want Leniency for Competitive Sales in Issue Price Rules
Municipal issuers and bond lawyers, among others, are hoping the Treasury Department and the Internal Revenue Service make allowances for competitive sales of municipal bonds in rules on issue price rules, which could be finalized as early as this summer.
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Municipal market participants are urging the Treasury Department and Internal Revenue Service to withdraw their proposed rules on political subdivisions, claiming they are unnecessary, possibly illegal, and would disrupt the municipal bond market. more »
The Government Finance Officers Association is the latest group to cry foul over the Internal Revenue Service and Treasury Department’s proposed political subdivision rules, and called on the IRS to withdraw the proposal. more »
Four port authorities and a wholesale electricity provider are warning that rules proposed by the Treasury Department and Internal Revenue Service earlier this year could hurt their standing as political subdivisions and their ability to issue bonds as well as complicate their governing structures. more »
The Internal Revenue Service has closed two audits with no change to the tax-exempt status of $117.73 million of utility revenue bonds issued by the Village Center Community Development District in 1998 and 2003, but retired in 2014. more »
An Illinois city is currently under audit for $12.8 million of general obligation corporate purpose bonds it issued seven years ago. more »
States had $968 billion in unfunded pension benefits, $518 billion in outstanding public debt, and $587 of unfunded retiree health care and non-pension benefits in fiscal 2013, according to a report on States’ Fiscal Health released by The Pew Charitable Trusts on Tuesday. more »
Despite House Republican threats of criminal prosecution, the District of Columbia Council will hold the first of two votes Tuesday that would give the district budget autonomy and the ability to spend its local tax and fee revenues without annual congressional appropriation. more »
Washington State Treasurer and National Association of State Treasurers president Jim McIntire this week called on the federal government to play a more active role in securing infrastructure funding for local governments and called on lawmakers to protect the tax-exempt status of municipal bonds to fund such projects. more »
Facing new federal constraints on tax-exempt debt for projects with a private revenue stream, El Paso County, Texas, refunded tax-exempts with taxable bonds and still achieved interest rate savings. more »
Colorado state lawmakers have passed legislation designed to validate previous elections of special districts and protect them from legal challenges to their “qualified electors” who vote to create the districts and authorize issuances of tax-exempt bonds. more »
Rep. Randy Hultgren, R-Ill., warned House subcommittee leaders considering tax reform proposals on Thursday that a cap or elimination of tax exemption for municipal bonds could raise the cost of infrastructure projects in their own districts. more »
The Indianapolis Airport Authority said this week that it has agreed to settle a dispute with the Internal Revenue Service over rebate liability in connection with $347 million of tax-exempt bonds, even though it disagrees with the IRS' position on the bonds. more »
The Securities and Exchange Commission is charging a father, his son, and five of their associates with defrauding investors in Native American tribal bonds to pay for, among other things, their luxury expenses and legal costs associated with prior fraud charges. more »

Chris Hamel, managing director and head of municipal finance at RBC Capital Markets, discusses why the infrastructure problem in the U.S. is not one of capital but of funding, why P3 has not yet taken off in this country and how it could, how design-build could work well within the muni framework, and issues a call-to-action to the muni industry to come together to advance an infrastructure agenda.

Our legislation would preserve money market funds as a source of liquidity and capital for public the infrastructure needs of our citizens.

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