Tribes ask Congress to end tax-exempt bond dispute

Friday, January 19, 2007  

Sens. Gordon H. Smith (R-Oregon) and Max Baucus (D-Montana) will reintroduce legislation to clarify that tribes can issue tax-exempt bonds for governmental projects, a Washington lobbyist said..

Speaking at the 12th annual Western Indian Gaming Conference, lobbyist Tom Rodgers said tribes should be treated the same as state and local governments. Tax-exempt bonds will enable them to diversify their economies, he said.

Currently, the Internal Revenue Service is auditing several tribes who have issued tax-exempt bonds. At issue is whether the tribal projects are "essential government functions" or whether they are merely commercial enterprises.

States and local governments aren't subject to the same test. The legislation would put tribes on the same level.

Get the Story:
Tribes seek clarity on bond-issue rules (The Riverside Press-Enterprise 1/19)
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Relevant Links:
Tax Exempt Bond Community - http://www.irs.gov/taxexemptbond

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