Decision on Florida CDD Has Broad Implications for Tax-Exempt Bonds

more+
less-

The IRS issued a Technical Advice Memorandum (TAM) on May 9, 2013, that the Village Center Community Development District (the "District") is not a division of state or local government, and therefore is not a political subdivision for purposes of Section 103 of the Internal Revenue Code. The IRS has taken the position that the landowners controlled the District and therefore, despite its purported sovereign powers, it was not a “division of state or local government.” The TAM has called into question the tax-exempt status of bonds issued by community development districts that are "controlled" by one or more landowners and other special districts throughout the United States that are "controlled" by one or more landowners. Here is the TAM.
 

Topics:  Bonds, Community Development Entities, IRS, Tax-Exempt Bonds

Published In: Elections & Politics Updates, Finance & Banking Updates, Tax Updates, Zoning, Planning & Land Use Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Holland & Knight LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »