Tax

The Scranton, Pa., City Council introduced proposals to increase in the real estate transfer, business privilege and mercantile taxes for 2013.

The Internal Revenue Service's tentative decision that the Village Center Community Development District in Florida is not a political subdivision could have far-reaching effects on special purpose districts set up for municipal bond issues nationwide.

The IRS "tentatively" concluded that the Florida Village Community Development District is not a political subdivision, raising questions about the tax-exempt status of community development district bonds nationwide.

The Council of Development Finance Agencies is urging Congress to create special Hurricane Sandy Recovery Bonds upon their return from recess in two weeks. The bonds would assist affected states, municipalities, and private businesses repair storm-related damage.

Treasury Officials announced that the U.S. will hit its $16.39 trillion borrowing limit at the end of the year but they can employ extraordinary measures such as stopping the issue of SLGS to allow Congress more time to act so the government meets its legal obligations.

As the Southeast's economy slowly begins to thaw, measures on the Nov. 6 ballot reflect both fiscal conservatism and pent-up demand for education and transportation needs.

Bond lawyers welcomed the favorable conclusion from the IRS' Chief Counsel Office that the bond insurance premium for Build America Bonds is a capital expenditure.

Gov. Lincoln Chafee and the Rhode Island Economic Development Corp. approved a measure to lower the corporate income tax rate for Alexion Pharmaceuticals Inc.

The IRS will soon publish a report about their findings from 300 questionnaires they sent out last year to governmental and 501(c)(3) issuers about their advance-refunding procedures and post-issuance compliance, an agency official told bond lawyers at the NABL conference.

Although state tax collections grew for a tenth consecutive quarter, they are still below 2008 levels and may weaken in the near future, according to the most recent analysis from the Rockefeller Institute of Government.

A panel of experts discussed the threats to tax exemption at the NABL's bond attorney's workshop in Chicago. Citi Research has released a new report which urges market participants to make their case to lawmakers for the need to preserve tax exemption.

The National Association of Bond Lawyers elected new officers and announced three new board members here on Wednesday. Scott R. Lilienthal, a partner at Hogan Lovells LLP in Washington, D.C., who had been president-elect, became president, replacing Kristin Franceschi, a partner at DLA Piper LLP in Baltimore.

The National Association of Bond Lawyers has announced winners of three awards recognizing notable service to the association and the public finance sector to Howard Zucker, Dave Caprera, and Hobby Presley.

Securities and Exchange Commission officials downplayed the potential for the so-called budget "sequestration" Thursday, but said dealers selling Build America Bonds should inform investors of any potentially risky call provisions.

The IRS will begin sending out online questionnaires to 501(c)(3) and governmental issuers next year requesting information about their post-issuance compliance practices.

Rep. Dennis Kucinich has asked the Treasury Department to investigate whether it was appropriate to use Build America Bonds to help finance the construction of a large coal-fired plant known as Prairie State Energy Campus, which has experienced cost overruns and operational problems that are hurting municipalities, electric cooperatives and 2.5 million ratepayers across eight states.

The Internal Revenue Service is examining almost $40.63 million of variable rate student loan bonds and notes issued by the Oklahoma Student Loan Authority in 2002.

The New Hampshire Health and Education Facilities Authority has proposed paying the Internal Revenue Service an undisclosed payment under the voluntary closing agreement program to settle tax law issues with $135.4 million of adjustable rate education loan revenue bonds it issued in 2011.

New York residents shoulder the highest state and local tax burdens at 12.8%, the Tax Foundation found in a new study.

The IRS is auditing $650 million of general obligation school bonds Clark County, Nev. School District issued in 2007 and $50 million of general obligation water and sewer bonds Fernley, Nev. Issued in 2007.