Quote:
Originally Posted by Skybo
Please explain to me how the amenities and/or the amenity fees might be affected. I’m not being argumentative...I'm really just trying to understand this.
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As I understand it, the IRS is saying the bonds used by the district did not qualify as tax free bonds for various reasons. If the IRS prevails the district could be responsible for the loss of tax revenue on the bonds, penalties and possibly redeeming bonds... because they received the benefit of the lower cost of the bonds sold as tax free. If they have to pay the IRS it could be from the amenities fees or selling amenities because that is the source of their income and it was amenities that the bonds were used for. I am not aware of any other way the district could pay. I suppose it is possible the district could sue someone later to try to recoup their losses. If someone knows of another way the district could pay, please let me know.
jj