Advertise:   712.224.5420

Cabazon Band near deal over tax-exempt bonds

The Cabazon Band of Mission Indians is about to strike a deal over the tax-exempt bonds that have been challenged by the Internal Revenue Service, The Riverside Press-Enterprise reports.

In 2003, the tribe sold $145.5 million in tax-exempt bonds to build a hotel and convention center. The IRS ruled that the project wasn't an "essential" government function because it was commercial in nature.

The Cabazon Band is challenging the IRS ruling but is near a deal with bondholders to allow for improvements at the casino, The Press-Enterprise reports. The tribe is still waiting on another IRS ruling, however, the paper said.

The Seminole Tribe of Florida, whose bonds were also challenged by the IRS, recently reached a deal with bondholder to retire and pay off the bonds.

Get the Story:
Tribe, IRS square off over bonds (The Riverside Press-Enterprise 10/25)

Related Stories:
ICT: Seminole Tribe to avoid bond fight with IRS (10/11)
Per capita payments under tribal, federal scrutiny (09/26)
IRS audits Morongo Band over tax-free bonds (08/26)
IRS taking yet another stab at Indian Country (08/03)
IRS changes policy on Native corporation dividends (06/16)
Cabazon Band to challenge IRS over tax-exempt bonds (04/14)
IRS rules against second tribe in tax bond dispute (4/13)
IRS cites problems with use of tribal gaming revenues (04/06)
Cities under scrutiny as IRS probes tribal tax bonds (03/15)
IRS claims casinos, hotels not governmental projects (01/20)