2000-11-08 Packet - Laserfiche WebLink

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General The preceding is not a comprehensive list of all federal tax consequences which may arise from the re- ceipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds may otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items of in- come or deductions. All prospective purchasers of the Bonds are advised to consult their own tax advi- sors as to the tax consequences of, or tax considerations for, purchasing or holding the Bonds. Qualified Tax - Exempt Obligations • The City will designate the Bonds as "qualified tax- exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax- exempt obliga- 1 tions. "Qualified tax- exempt obligations" are treated as acquired by a financial institution before August 8, 1986. Interest allocable to such obligations remains subject to the 20% disallowance under prior law. -16-