Michael L. "Mike" Wiener is a Partner in our Lakeland office .
John E. Theberge is a Partner in our Washington, D.C. office .
The IRS issued a Technical Advice Memorandum (TAM) on May 9,
2013, that the Village Center Community Development District (the
"District") is not a division of state or local
government, and therefore is not a political subdivision for
purposes of Section 103 of the Internal Revenue Code. The IRS has
taken the position that the landowners controlled the District and
therefore, despite its purported sovereign powers, it was not a
"division of state or local government." The TAM has
called into question the tax-exempt status of bonds issued by
community development districts that are "controlled" by
one or more landowners and other special districts throughout the
United States that are "controlled" by one or more
landowners. Here is the TAM.
Holland & Knight attorneys are available to discuss concerns
related to the implication of this TAM.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
