Village Homeowner, I've read the IRS report and there is no mention of the "excess" as a tax issue. The excess, as reported earlier, seems to have been properly reported on the Developer's (Mr. Morse's) corporate taxes. The issue, as I understand the report, is the bond issuer's authority to issue the bonds under a tax exempt status. If it is found that the development district improperly issued the bonds as tax exempt, there will be a new tax liability. Who pays that new liability? I have a feeling it will be the residents of the development district. I suppose the Developer could ste in and and do the right thing, but who really believes that a businessman would ever give up a legal gain of many millions, unless he was forced to do it. But I could be wrong. If this was decided against the development district in the end, I'm pretty sure that our Uncle Sam is going to get his share, and he probably doesn't care much who he gets it from.
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