Tax

The tax exemption has been in place for more than 110 years, but Republicans say its removal is vital for prolonging many parts of the Tax Cuts and Jobs Act.

Audit activity in the municipal market ebbs and flows with the IRS budget.

Texas Sen. John Cornyn remains a supporter of private activity bonds, his staff told BDA.

Both houses of the Virginia state government have advanced budget bills that include rebates to taxpayers from surpluses fattened by federal funding and robust tax collections, a trend that concerns policy experts.

A recent Texas Supreme Court decision will force the city to increase the amount of property tax revenue allocated to a dedicated drainage and street fund.

Connecticut's governor proposed a new public finance tool as part of a broad plan to improve the state's resiliency against extreme weather and climate change.

Tax exemption concerns — though an elimination is unlikely — and the loss of federal stimulus will "most assuredly pull forward delayed issuance, with the first half of 2025 volume to exceed second half volume," said James Welch, a municipal portfolio manager at Principal Asset Management.

The muni industry is trying to get to the bottom of questions around how the House arrived at savings estimates for eliminating the tax exemption.

To close out the day, USTs remained mixed, with yields rising on the short end and falling out long, while munis were changed up to a basis point, depending on the curve.

Municipal market advocates plan to use the data to support the case to Congress for preserving the tax exemption.