Patrick Temple-West

The top Democrat on the House tax-writing committee defended itemized tax deductions Friday that would be repealed under some tax reform proposals, but did not take a position on whether to maintain the federal tax exemption for interest earnings from state and local bonds.

WASHINGTON — State revenues are expected to rise in fiscal years 2011 and 2012, but a record jump in Medicaid costs, combined with voters’ reluctance to take on new debt, could keep states from issuing bonds for infrastructure and other investment projects, officials and market participants said Thursday.

WASHINGTON — Washington State lawmakers in the House and Senate have introduced legislation to create $3 billion of qualified forest conservation bonds that could be used to help spur public-private partnership financing of sustainable ecosystems.

WASHINGTON — The District of Columbia’s budget vote last Wednesday jolted local municipal bond investors who could see their taxes jump on Oct. 1 as a result of a provision to tax the interest earnings from munis issued outside the district.

WASHINGTON — Consumption increased 0.4% in April as the personal savings rate edged down to the lowest level in 20 months, the Commerce Department reported Friday.

WASHINGTON – Consumption increased 0.4% in April as the personal savings rate edged down to the lowest level in 20 months, the Commerce Department reported Friday.

WASHINGTON — U.S. gross domestic product expanded 1.8% at an annual rate in the first quarter, unchanged from the initial estimate, as consumer spending was revised lower and non-residential investments increased, the Commerce Department reported Thursday.

WASHINGTON – U.S. gross domestic product expanded 1.8% at an annual rate in the first quarter, unchanged from the initial estimate, as consumer spending was revised lower and non-residential investments increased, the Commerce Department reported Thursday.

WASHINGTON — District of Columbia residents holding municipal bonds issued outside of the city are about to lose their local income tax exemption — a perk killed by council members in an attempt to raise revenues and stave off higher taxes.

The Internal Revenue Service is sending out questionnaires to 300 issuers asking about their advance-refunding procedures and post-issuance compliance.

SAN ANTONIO — Government officials are sweating the risk that they will lose the tax-exemption for muni bonds, worrying that the market for tax-credit bonds — an alternative to tax-exempts posed by some members of Congress — won’t work as well.

SAN ANTONIO — State and local governments dodged a bullet again on the 3% withholding requirement when earlier this month the Internal Revenue Service postponed its start date until 2013.

SAN ANTONIO — Government officials vented frustration Saturday over new rating agency requirements imposed on some debt issuers as a result of the backlash from the financial crisis.

SAN ANTONIO — The federal relations director for the National Council on Teacher Retirement here Monday defended state and local retirement funds, saying most are well-funded and that alarmists have whipped up an unsubstantiated controversy over pension funds.

The Internal Revenue Service has revised its Form 8038 for private-activity bonds, asking issuers now to provide more specific information about their guaranteed investment contracts and hedges.

Sen. Jeff Bingaman, D-N.M., has introduced a bill that would raise the small-issuer limit for bank-qualified bonds to $30 million from $10 million — legislation that is drawing strong support from issuer and muni market groups.

The Toledo-Lucas Port Authority entered into a closing agreement with the Internal Revenue Service to preserve the tax-exempt status for $3.5 million of 2005 bonds after the IRS found they were taxable.

Federal legislation introduced last week would prohibit states and localities from collecting taxes on certain electronic transactions, but governmental officials are worried about the revenue losses and the precedent the law would set.

Legislation has been introduced in both the House and Senate that would exempt water and sewer bonds from states’ private-activity volume caps.

WASHINGTON — The Bartram Park Community Development District in Jacksonville, Fla., has received an audit notice from the Internal Revenue Service for $28.7 million of special assessment municipal bonds issued in 2005.