A private management contract for a bond-financed solid-waste disposal facility that would not meet tax law requirements in special circumstances like hurricanes would not constitute private use and jeopardize the tax-exempt status of the bonds, the Internal Revenue Service said in a recent ruling.

The IRS detailed its ruling on the facility in a private-letter ruling that was publicly released last Monday. The ruling, dated Dec. 11, did not identify the bonds or the issuer. Private-letter rulings, while technically applicable only to the issuer that requested them, are seen as important guidance on the IRS' thinking on tax matters.

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