[janmcn]

Originally Posted by Mikeod

The dispute is not with Morse, but with the central districts who issued the bonds to purchase the amenities. That is why the costs are being paid out of the district's income stream, which is our amenity fees.

I think this latest development is significant in that a major part of the dispute was the IRS position that the VCCDD and SLCDD were not political subdivisions and therefore not eligible to issue tax free bonds. This stance applied a standard that was not in effect at the time the bonds were issued and now the IRS agrees not to apply the new standard retroactively.

How will this latest ruling from the IRS effect the way the developer transfers all the facilities south of CR466 to the SLCDD? Will they be able to do it the same way they transferred all the assets north of CR466?

[Mikeod]

Originally Posted by janmcn

How will this latest ruling from the IRS effect the way the developer transfers all the facilities south of CR466 to the SLCDD? Will they be able to do it the same way they transferred all the assets north of CR466?

Well, the dispute is still not resolved so I don't expect anything to happen yet. IIRC, the interest rate used for the bonds determines the developer's net on the transfer. The lower the rate, the greater the net.

So, on one hand, they may want to wait until the dispute is completely settled. But, on the other hand, they may want to transfer now while interest rates are low, since they are expected to rise later this year if you listen to the Fed.

[rubicon]

Originally Posted by bimmertl

Really, it's "far from the truth" that Morse was being challenged by the IRS for not paying taxes and he was really trying to keep the CDD concept alive? Amazing!

Morse issued $426 million in bonds, so he could use other peoples money to build the Villages, not his own which many of the uniformed believe, which the CDD concept allows. When he issued the bonds he declared they were tax free bonds and the $955 million profit he made on issuing the "tax free" bonds didn't require him to pay any income tax. The allegation the bonds were tax free is exactly what the IRS is challenging and Morse is challenging that allegation and using our amenity fees to pay his attorneys.

Here's a link to actual facts versus just made up TOTV "facts".

Billionaire Morse

Thank you that was my take and that's what I side on these pages for a number of years but many people just accused me of being a complainer, whinner jealous of the Developer. but I kept telling them go online and get the original three IRS filings on this and it explains it all

I do hope it is over

[Advogado]

Originally Posted by Mikeod

Well, the dispute is still not resolved so I don't expect anything to happen yet. IIRC, the interest rate used for the bonds determines the developer's net on the transfer. The lower the rate, the greater the net.

So, on one hand, they may want to wait until the dispute is completely settled. But, on the other hand, they may want to transfer now while interest rates are low, since they are expected to rise later this year if you listen to the Fed.

Apparently the ruling that the Center Districts (due to Developer control) do not qualify as political subdivisions stands. All the latest IRS communication does is not apply that ruling retroactively to the previously issued bonds. Thus, in the future, it would seem that all bonds issued by the Developer-controlled center districts will be issued as taxable bonds-- as were the bonds issued to raise money to redeem the previously issued bonds.

Also note that while the latest IRS communication is good news for the Center Districts, the Developer, and us, two more rationales for the bonds to be taxable still could be applied to the previously issued bonds:
(1) Overissuance of bonds due to alleged overpricing of the assets sold by the Developer to the Center Districts. This issue does seem to have faded into the background.
(2) The bonds were allegedly issued to finance the private activity of the Developer and not for a public purpose.

Time will tell how this all plays out.

[xNYer]

Originally Posted by bimmertl

Really, it's "far from the truth" that Morse was being challenged by the IRS for not paying taxes and he was really trying to keep the CDD concept alive? Amazing!

Morse issued $426 million in bonds, so he could use other peoples money to build the Villages, not his own which many of the uniformed believe, which the CDD concept allows. When he issued the bonds he declared they were tax free bonds and the $955 million profit he made on issuing the "tax free" bonds didn't require him to pay any income tax. The allegation the bonds were tax free is exactly what the IRS is challenging and Morse is challenging that allegation and using our amenity fees to pay his attorneys.

Here's a link to actual facts versus just made up TOTV "facts".

Billionaire Morse

The bonds were not issued by Morse, but by the VCCDD. The Villages contention is that the VCCDD is a governmental authority with the ability to issue tax free bonds. The bonds were not only not issued by the Morse family, but were used by the VCCDD to purchase assets from the developer. The stream of money from amenity fees were used in developing the value of the purchased assets.