Quote:
Originally Posted by Bill-n-Brillo
From the VHA's current The Villages Voice:
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IRS Update
Janet Y. Tutt
District Manager
Village Community Development Districts
During October, representatives of Village Center Community Development District (VCCDD) were advised the Internal Revenue Service’s (IRS) Tax Exempt Bond Enforcement Division that the IRS is inclined to take the position that a special district is not a political subdivision for purposes of Section 103(a) of the Internal Revenue Service 1986.
In response to the communication, representatives of VCCDD met and discussed the issue with representatives of the IRS’s Tax Exempt Bond Enforcement Division including the General Counsel’s office. As a result of the meeting, the VCCDD was requested to prepare further analysis of Florida Statute Chapter 190, applicable case law, and information pertaining to the hundreds of Special Districts that have issued tax exempt bonds in the State of Florida in addition to Special Districts throughout the country. The response has been prepared and submitted to the IRS. It can be found on the District web site at Village Community Development Districts .
Also on the web site is a letter from the National Association of Bond Lawyers (NABL) which provides additional clarity to the issue regarding the IRS review of the District’s tax exempt status.
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Here's the link to the article:
The Villages Voice
Bill  |
I have tried to read through the evidence provided many times before, but unless you have a lot of time on your hands or are particularly interested in case study, I find it not that informative. However, the key words from the above post, IMO, are "the IRS is inclined to take the position that a special district is not a political subdivision for purposes of Section 103(a) of the Internal Revenue Service of 1986".
Hopefully, this case gets settled soon so every property owner can find out what it's going to cost them.