Llama19
Registered User
To quote:
"Sec. 3604. No tax exempt bonds for professional stadiums.
Current law: Under current law, State and local governments may issue public purpose bonds, interest on which is excluded from Federal tax. In contrast, the interest on private activity bonds issued by State and local governments, but which benefit private individuals or entities, is generally subject to Federal tax unless such bonds are deemed qualified by meeting very specific criteria. Examples include exempt facility bonds, qualified mortgage bonds, qualified veterans’ mortgage bonds, qualified small issue bonds, qualified student loan bonds, qualified redevelopment bonds, and qualified 501(c)(3) bonds. Professional sports stadiums do not generally meet any of these criteria. Nonetheless, some State and local governments have issued bonds and successfully taken the position that interest on the bonds is exempt from Federal tax because the bonds are public purpose bonds.
Provision: Under the provision, interest on bonds issued to finance the construction of, or capital expenditures for, a professional sports stadium would be subject to Federal tax. A professional sports stadium is any facility that is used as a stadium or arena for professional sports exhibitions, games or training for at least five days in any calendar year. The provision would be effective for bonds issued after the date of introduction."
Source: http://www.fieldofschemes.com/2017/...fork-in-tax-exempt-bonds-for-sports-stadiums/
Tax Cuts and Jobs Act source (PDF): http://3hm75d2ak36959oew3zvzim1.wpe...ent/uploads/2017/11/Tax-Cuts-And-Jobs-Act.pdf
"Sec. 3604. No tax exempt bonds for professional stadiums.
Current law: Under current law, State and local governments may issue public purpose bonds, interest on which is excluded from Federal tax. In contrast, the interest on private activity bonds issued by State and local governments, but which benefit private individuals or entities, is generally subject to Federal tax unless such bonds are deemed qualified by meeting very specific criteria. Examples include exempt facility bonds, qualified mortgage bonds, qualified veterans’ mortgage bonds, qualified small issue bonds, qualified student loan bonds, qualified redevelopment bonds, and qualified 501(c)(3) bonds. Professional sports stadiums do not generally meet any of these criteria. Nonetheless, some State and local governments have issued bonds and successfully taken the position that interest on the bonds is exempt from Federal tax because the bonds are public purpose bonds.
Provision: Under the provision, interest on bonds issued to finance the construction of, or capital expenditures for, a professional sports stadium would be subject to Federal tax. A professional sports stadium is any facility that is used as a stadium or arena for professional sports exhibitions, games or training for at least five days in any calendar year. The provision would be effective for bonds issued after the date of introduction."
Source: http://www.fieldofschemes.com/2017/...fork-in-tax-exempt-bonds-for-sports-stadiums/
Tax Cuts and Jobs Act source (PDF): http://3hm75d2ak36959oew3zvzim1.wpe...ent/uploads/2017/11/Tax-Cuts-And-Jobs-Act.pdf