Tax

DALLAS — Louisiana is taking $403.5 million of gasoline and fuel-tax bonds to market next week as tax-exempt debt, rather than Build America Bonds, in response to investor demand.

BNY Mellon is introducing a new service to help municipalities entitled to federal cash subsidies track projects and report information to the Internal Revenue Service.

The Internal Revenue Service has initiated an audit of $21.8 million of tax refunding bonds issued in 2005 by the Uvalde, Tex., Consolidated School District.

WASHINGTON — Four major municipal market groups are urging the Treasury Department to issue guidance confirming that the existing regulatory framework on issue price for tax-exempt bonds also applies to Build America Bonds and stating that if issuers follow certain long-standing practices, they can be confident they are complying with the rules in this area.

The American Bar Association’s taxation section has sent the Treasury Department several suggestions it contends would simplify and make more flexible interim guidance for issuers, bondholders, and other market participants that want to strip the tax credits from tax-credit bonds.

The Senate is poised to pass legislation that would extend and phase out enhanced federal Medicaid payments to states for six months through June 30, 2011, as well as provide $10 billion to local school districts to prevent an estimated 140,000 educators from being laid off.

WASHINGTON — Private-activity bond issuance lagged in 2009 for the second year in a row, despite efforts by Congress to make the bonds more attractive, as the recession continued to take a toll on this part of the municipal market, according to an annual survey and market participants.

Recently introduced legislation extending several temporary bond provisions is not expected to be voted on by the House until September at the earliest, despite attempts from Democratic leaders to move quickly on the measure.

WASHINGTON — Twenty-four municipal market groups have signed a letter praising House Ways and Means Committee chairman Sander Levin for introducing legislation to extend several temporary muni bond provisions, and calling for continued support of municipal issuers during tough economic times.

WASHINGTON — House Ways and Means Committee chairman Sander Levin Wednesday introduced a new bill that enables Congress to make another attempt at extending several bond provisions slated to expire at the end of the year, including Build America Bonds.

WASHINGTON — A draft bill released by House Ways and Means Committee chairman Sander Levin late Monday would authorize over $5 billion in new bond authority for renewable energy projects and open the door for private-activity bonds to be used by states and localities to finance energy-efficient upgrades to residential homes.

A discussion draft of a new bill unveiled yesterday by House Ways and Means Committee chairman Sander Levin, D-Mich., would allow state and local governments to issue tax-exempt private-activity bonds to finance energy improvements to residential homes and would authorize more than $5 billion for new renewable energy bonds.

WASHINGTON — House Ways and Means Committee chairman Sander Levin plans next week to unveil new jobs legislation that would extend Build America Bonds and other muni bond initiatives that are set to expire at the end of the year.

BRADENTON, Fla. — The Florida Municipal Loan Council and the city of South Miami have notified investors in the Series 2002A and 2006 pool bonds that they have voluntarily entered the Internal Revenue Service’s compliance program.

WASHINGTON — President Obama yesterday signed into law financial regulatory reform legislation that will make sweeping changes in the municipal and other markets, saying it will prevent a reoccurrence of the “breakdown” that caused the current “severe recession.”

The Cinco Municipal Utility District No. 1, located near Houston, has disclosed that the Internal Revenue Service is auditing $5.2 million of revenue bonds it issued in 2002 to finance water and sewer infrastructure.

CHICAGO — A federal court ruling that lets the Lac du Flambeau tribe off the hook for repayment of $46.6 million of tribal gaming revenue bonds could harm the municipal market as a whole because the ruling undercuts investor rights in bond indentures and confidence in disclosure, the National Federation of Municipal Analysts warns.

WASHINGTON — The Senate voted 60 to 39 Thursday to approve sweeping changes to the financial regulatory system that will significantly alter the landscape of municipal securities regulation.

The Treasury Department is seeking comments from tribal governments on the tribal economic development bonds authorized by the stimulus law, including whether Congress should permanently repeal the “essential governmental function” standard for all tribal bonds.

WASHINGTON — Congress returns to work this week still lacking a clear game plan for extending bond programs and other federal assistance for state and local governments, despite pleas for the extensions from governors meeting in Boston through the weekend.