Talk of The Villages Florida - View Single Post - Janet Tutt Responds to IRS/Bond Rumors and Half Truths
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Old 06-08-2009, 11:33 AM
SNOK
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While the TV residents certainly have an interest in this issue, I still contend that the developer, who profited to some extent by the VCCDD's use of tax-free financing to purchase the assets, has as much or more financial risk as the residents. Also, in order for tax-free bonds to be sold, there is a bond counsel (lawyer) that gives a professional opinion (for a fee) that the bonds are legally issued and qualify as tax-free to the purchasers for federal income tax purposes. The bond counsel also has a financial risk if the bonds are later deemed to be taxable. The bond underwriters may also have exposure. Its just my opinion, but I believe that these parties will bear the majority of any ultimate additional liability, before any of the liability flows to the TV residents - current or future. Of course, placement of liability, should there be any, would likely require litigation, which the VCCDD board would be duty bound to pursue. Hopefully, it will not come to this, but the point is, there is a lengthy process before the residents would ever be saddled with any of the cost. Hopefully, this will be somehow communicated by responsible and credible sources, so that current and potential future residents don't get too anxious about a large future cost that likely will not accrue to them.