Local Officials Blast IRS Proposal
Rigsby, Deborah, Nation's Cities Weekly
Officials at the Internal Revenue Service (IRS) heard numerous objections last week to a proposed rule to restrict municipal prepayments for public service resources.
If finalized, this rule would ban municipal prepayments for public service resources such as natural gas. At a January 12 public hearing, municipal officials and public gas systems officials reiterated that cities and towns are not issuing tax-exempt bonds to purchase long-term supplies of natural gas or other commodities as an investment-type property to abuse arbitrage and related restrictions.
"I am simply trying to provide the most reliable and economical gas supply to my citizens," said Mayor …
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Publication information: Article title: Local Officials Blast IRS Proposal. Contributors: Rigsby, Deborah - Author. Magazine title: Nation's Cities Weekly. Volume: 23. Issue: 2 Publication date: January 17, 2000. Page number: 2. © 2009 National League of Cities. COPYRIGHT 2000 Gale Group.
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