Quote:
Originally Posted by bkcunningham1
I have a question Ms. Ritchie. What is the date of the most recent news story on the subject in the Sentinel?
I understand the job of a columnist and I hope people on this forum can grasp the difference in your opinion column and a hard news story. Not to say you are fabricating any of your points. But there is a valid difference.
Here's my take on the issue. The only question is whether the Villages Center Community Development District is treated as a political subdivision and has sovereign power for the purposes of section 103 of the Internal Revenue Code. Moreover, the question is do they have the legal right to exercise these powers in the future for certain undeveloped lands owned by the VCCDD.
This involves the VCCDD and $57,250,000 in Recreational Revenue Bonds, Series 2003A and $7,005,000 in Recreational Revenue Bonds, Series 2003B. There is certain criteria in Florida statutue that makes a political subdivision. The VCCDD lays out the determining factors such as taxing power, power to exercise eminent domain, police powers, upkeep and development of infrastructure et al.
The answer now rests with the IRS. If the answer goes against the VCCDD and they run out of appeals, they will pay the monies and penalties; and most likely will not be able to issue more bonds. End of story.
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BK,
you are right that there is a very big difference between a columnist and news reporter. the last news article i recall was when the agent in may 2009 suggested that the district settle the lawsuit by calling the bonds, paying $16 million in tax liability and agreeing never to issue tax-free bonds again. that was more than a year ago.
there is a very long process that these bonds go through during a review in which the IRS maintains that the bonds should have been taxable. from what i can determine they're not even halfway there. in the end, however, i believe you have it right.
lauren