Tax

The Vermont Student Loan Assistance Corp., which has been in discussions with the Internal Revenue Service to settle a tax law dispute over $165 million of auction-rate securities it sold in 1998, disclosed that the IRS is expanding its audit to include more of the issuer’s ARS.

Commissioners of Unified Government of Wyandotte County/Kansas City next week will consider a proposal to increase the property tax rate by 8.9% to generate $117.5 million for the city and $4.9 million for county operations.

Little Rock city directors voted last week to put a 1% sales-tax rate increase on the Sept. 13 ballot to finance capital improvements and various city operations.

WASHINGTON - The Internal Revenue Service said Wednesday that only about 20% of governmental issuers that responded to a survey showed they have written procedures or some system to make sure they comply with tax laws and rules after their bonds are issued.

Rep. John F. Tierney has introduced tax reform legislation that would require all tax-exempt municipal bonds to be issued as direct-pay subsidy bonds at a 28% subsidy rate after this year. The bill is part of an effort to eliminate certain tax expenditures and sway the deficit-reduction negotiations driving the legislative agenda.

A bill recently introduced in the House would create new tax-credit bonds to help state and local governments finance charging stations for plug-in electric cars.

The Internal Revenue Service closed a routine audit without changing the tax-exempt status of $147.5 million of auction-rate securities sold by the New Mexico Hospital Equipment Loan Council in May 2004.

But while New York Gov. Andrew Cuomo has received accolades for the property-tax cap — one of several political victories early in his first year in office — questions linger about its effect on counties, municipalities, and school districts.

Sens. Ron Wyden, D-Ore., and Dan Coats, R-Ind., are urging President Obama and congressional leaders to agree to include in their debt-reduction plan an agreement to enact comprehensive tax-reform legislation before the end of the year.

California Treasurer Bill Lockyer has waded into the issue of tax compliance by conduit tax-exempt bond issuers.

WASHINGTON - Conduit issuers and borrowers are stepping up their efforts to counter calls in Washington for the elimination of tax-exemption for municipal bonds.

The Crystal City, Tex., Public Facilities Corp. has received an adverse tax determination notice from the Internal Revenue Service for $14 million of bonds issued in 2003 for a prison.

New Jersey lawmakers this week are set to vote on the Democrats' $30.6 billion fiscal 2012 budget plan while debating a proposed temporary tax increase for residents making $1 million or more to help fund education spending.

Congressional Democrats on Friday called for limits on tax deductions as a way to reduce the deficit and also pushed for the Build America Bond program to be reinstated.

An end to truckers' support for an ­increase in Arkansas' diesel tax to support $1.1 billion of road bonds could mean a tax increase for trucking companies.

Several tax rates in Arkansas will drop Friday due to new laws that go into effect on July 1, the beginning of fiscal 2012. The tax bills were included in the 602 measures passed by the General Assembly in 2011.

WASHINGTON - The Center for American Progress says any debt-limit agreement should contain expenditure cuts, including eliminating tax-exemption for private-activity bonds and making other new munis direct-pay bonds with a 25% subsidy rate.

WASHINGTON - The Securities and Exchange Commission would create a five-person office of municipal securities and a 35-member office of credit ratings, both of which would report directly to the chairman as mandated by Dodd-Frank, according to letters the SEC sent lawmakers.

While municipal bonds are becoming increasingly politicized as the debate over eliminating their tax exemption heats up, many analysts say it won't become a serious issue until the 2012 elections.

Housing groups and bond dealers are urging the Internal Revenue Service not to adopt a proposed change in the way the average area purchase price is determined associated with mortgages financed with the proceeds of single-family housing bonds.