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Originally Posted by Villages Kahuna
I haven't followed the IRS case as closely as you have, and probably not enough. But one question I've had is..."what about the Disney CCD's and the bonds they've issued?"
My understanding has been that The Villages bond issuances for the construction of utilities, roads and common facilities in the districts were closely patterned after how Disney financed much of it's development in Orlando, particularly the City of Celebration and other residential developments they've done in and around the theme parks.
But I've never read about any IRS challenge of the Disney bonds. Or have I just missed that news?
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There are several posts that raise that basic question.
The answer is: The original, shotgun attack on CDDs by the IRS could well have made all CDD bonds taxable.
However, as time passed, the IRS seemed to conclude, without ever admitting it, that it had bitten off more than it wanted to chew, and narrowed its rationale so that it would only make Villages Center District Bonds taxable. The current IRS rationale would only apply to The Villages because apparently none of the other CDDs pushed the envelope the way the Developer did when he set up the forever-Developer-controlled Center Districts and then used them to purchase and administer the amenity facilities from the Developer--issuing the "tax exempt" bonds to finance the purchase.
Again, for a coherent explanation of what is going on, refer to the 2009 POA article that I cited in an earlier post. Post-2009 developments are described in subsequent POA Bulletins.
Allegations that all this has to do with Obama targeting the Morse family are totally groundless. The investigation started under Bush, was part of a general IRS crack down on perceived abuses of municipal-bond financing, and the issue remains the same as originally raised. In fact, with the passage of time, the IRS has toned down the vehemence of its attack on the Developer. However, the fact that the investigation has dragged out this long, without some kind of conclusion, gives credence to allegations concerning the incompetence of the IRS.
Incidentally, there is no doubt that our amenity fees are being used to pay the attorney bills in this matter. This has been widely reported and can be confirmed by just calling the District Office.