Tax

The National Association of Bond Lawyers issued an alert Friday to its members about the potential impact the $1.2 trillion in across-the-board federal budget cuts would have on Build America Bonds and other direct-pay bonds.

Republican presidential candidate Mitt Romney reported $1,329 in tax-exempt interest on his 2011 tax return, his campaign revealed Friday afternoon.

Fifty House Republican freshmen on Thursday urged the House Ways and Means Committee to quickly extend dozens of expired or expiring tax breaks, some of which are municipal bond-related.

The preservation of tax-exemption has become a key issue for mayors across the country, as they face $1.2 trillion of looming across-the-board sequestration cuts that would drastically reduce federal funding to states and municipalities.

State tax collections increased by 3% for the 10th straight quarter from April to June, according to a new report from the Rockefeller Institute of Government.

Pecos City, Texas has discovered federal tax law issues relating to the tax-exempt status of $5.6 million of certificates of participation it issued in 2011 and plans to enter into a voluntary closing agreement with the Internal Revenue Service.

The threat that federal subsidy payments for Build America Bonds could be slashed under the sequestration process after administration officials assured issuers those payments were safe could permanently sour the muni market on BABs and other direct pay bonds, market participants said Monday.

Bond lawyers praised an Internal Revenue Service proposal late last week that would eliminate requirements for state and local bond opinions under its Circular 230 rules, which governs written tax advice.

Threats to eliminate or curtail tax-exemption is a top concern for state treasurers and they continue to closely monitor proposals as a new Congress and White House are elected in the coming months. The NAST president and president-elect also discuss their goals for the organization.

Airports Council International-North America released a manifesto Monday, calling for the U.S. government to eliminate the alternative minimum tax on private activity bonds and provide airports with reliable funding mechanisms.

Congress returns from its August recess this week after a month of campaigning and faces a laundry list of issues to tackle, including extending dozens of expired tax breaks and approving legislation to avoid a government shutdown after Sept. 30.

The Fort Lauderdale, Fla., City Commission Wednesday approved issuing $340 million of taxable pension obligation bonds to pay 75% of the city's unfunded liability.

With Kentucky's unfunded public pension liability at more than $30 billion, a task force is examining how to close the unfunded gap and may consider pension bonds.

Glendale, Ariz., officials are developing a five-year plan to deal with the end of a 0.7% sales tax set to expire in 2017.

Reno, Nev. redevelopment officials are trying to come to a compromise with Washoe County over tax revenue in order to make debt service requirements.

The GOP 2012 platform, scheduled to be approved at the party's national convention Tuesday, includes several familiar tax proposals and a handful of initiatives to encourage more private sector involvement in infrastructure finance.

A state representative from suburban Columbus said she is drafting legislation that would create a uniform income-tax code for all Ohio municipalities.

The South Texas Higher Education Authority Inc. has proposed paying IRS $438,243 under the voluntary closing agreement program to settle tax law issues over $255.8 million of student loan bonds it issued in 2007.

Texas will sell $155 million of general obligation bonds for water projects on Sept. 11 as the Internal Revenue Service conducts a routine audit of a 2002 deal.

Harrisburg controller Dan Miller says the tax increase receiver William Lynch seeks in court won't rescue Pennsylvania's capital city from the financial abyss.