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Originally Posted by pappy1
Thanks for the post - good article.
Have not seen these questions asked .....
What are the implications to Villagers if the State of Florida & IRS challenges are successful? Who would pay any taxes due? Could Villagers be "assessed" to meet the obligations if they are deemed due by the "Districts"? Who would vote on the validity of that assessmment...the same friends & family?
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I believe the persons/entities that purchased the bonds would owe back taxes on any income derived from the bonds. That would probably cause these persons/entities to bring legal action against the original seller of the bonds to recover their losses. The bonds would be recalled and re-issued as taxable bonds (meaning the districts would pay more interest than they did on tax free bonds). It may not be such a bad thing since interest rates are probably much lower now than when to original bonds were issued.