IRS: Village Center CDD Bonds Are Taxable PABs
Bonds issued by the Village Center Community Development District in Florida, the subject of a years-long audit and a controversial technical advice memorandum, are taxable private-activity bonds, the IRS said in a new notice of proposed issue.
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The Internal Revenue Service has issued a favorable but limited private-letter ruling concluding a total return swap entered into between a borrower and a bank at the same time the underlying tax-exempt bonds were sold is “not an abusive arbitrage device,” tax lawyers said. more »
An online sales tax proposal from House Judiciary Committee Chairman Bob Goodlatte is drawing criticism from a top Senate Democrat and officials with state and local government groups. more »
Treasury Secretary Jack Lew said Wednesday that congressional Republicans and the Obama administration are too far apart on individual tax reform but could reach an agreement on business tax reform. more »
President Obama's fiscal 2016 budget is expected to propose permanently increasing the qualified small issuer to cap to $30 million and allowing banks investing in munis to take a deduction – two provisions that were included in the American Reinvestment and Recovery Act. more »
Senate Finance Committee Chairman Orrin Hatch said Tuesday that tax reform his top priority and that he is aiming for bipartisan tax-reform legislation to be introduced and voted on in the committee later this year. The state treasurers are urging him to preserve the tax exemption for muni bonds. more »
Municipal market participants applauded President Obama’s proposal on Friday to create a new type of tax-exempt municipal bond that could be used to help finance public-private infrastructure projects, but one questioned whether it will pass muster with Congress. more »
The Senate Finance Committee took a step toward comprehensive tax reform on Thursday by launching five bipartisan working groups charged with issuing a report with recommendations by the end of May. more »
Rebecca Harrigal, director of the Internal Revenue Service's tax-exempt bonds office, will provide updates on TEB's work in fiscal 2015 during an audio webcast next month, the IRS said Wednesday. more »
Municipal bonds could get caught up in corporate tax reform, particularly if infrastructure financing is involved, a former Treasury Department official said. more »
Sen. Dean Heller, R-Nev., has introduced a bill that would make the deduction for state and local sales taxes permanent, while Rep. Bob Goodlatte, R-Va., has introduced a bill that would make the moratorium on taxing Internet access permanent. more »
The Internal Revenue Service has announced a simplified process for issuers that have loaned proceeds of qualified 501(c)(3) bonds to borrowers that automatically lost their tax-exempt status for failing to file annual returns or notices for three consecutive years, but have subsequently received reinstatement of their tax-exempt status from the IRS. more »
The Congressional Research Service has released a report providing information and revenue estimates for tax-exempt bonds for members of Congress who are likely to examine them and consider curbs in tax reform proposals. more »
New House rules on dynamic scoring could make tax reform easier to do, said municipal and tax experts who differed on whether such scoring would benefit or hurt municipal bonds. more »

Contrary to the assertion in a Bond Buyer article that the 2010s may turn out to be the decade of the municipal bankruptcy, it is remarkable how few muni bankruptcies were sought in the wake of the most severe fiscal crisis to hit local governments since the Great Depression.

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