10-13-1982 Council Agenda - Laserfiche WebLink

Home Browse Search

SUMMARY OF PROVISIONS IN TAX EQUITY AND FISCAL RESPONSIBILITY ACT OF 1982 AFFECTING TAX- EXE_; ?T PONDS Industrial Revenue Bonds 1. A public hearing and approval by an elected official or legislative body or voter referendum are required by both the issuing jurisdiction and the jurisdiction where the facilities are located. 2. Facilities financed with bonds must be depreciated on a straight -line basis using accelerated depre- ciation (ACRS) lives. Full ACRS deductions would still be ?erpitted for low- income rental housing, munici_al sewage or solid waste facilities, pollution control facilities for plants placed in service prior to July 1, 1982, and facilities for which UDAG grant has been awarded. 3. Infornat.ion regarding the amount of the lendable proceeds, the interest rate, term of the issue, and principle users must be reported to the IRS for bends issued during the preceding calendar quarter. (This requrement also applies to student loan bonds and bonds for tax - exempt organizations under Sec. 501(c)(3) of IRC.) 4. The average term for maturity of bonds would be limited to a period no greater than ,120 percent of the average economic life of the assets financed by the bonds. 5. Small issue IRB's (under $10 million) are not permitted where 25 percent or more of the bond proceeds are used to finance retail food and beverage services (except grocery stores), auto- mobile sales or service, and the provision of recreation or entertainment. No portion of the proceeds may be used to finance any private or commercial golf course, country club, massage parlor, tennis club, skating facility, racquet sports facility, hot tub facility, suntan facility, or race track.