Ohio Senators Oppose Political Subdivision Regs
Senators Rob Portman (R-OH) and Sherrod Brown (D-OH) sent a letter to Internal Revenue Service (IRS) Commissioner Koskinen, opposing the current form of the IRS proposed political subdivision regulations (REG-129067-15). The senators expressed concern that the definition is overly broad and risks denying tax exempt financing to “valid and vital political subdivisions” such as sewer districts, port authorities and airport authorities. The senators specifically point to the government control test’s application to multi-jurisdictional entities and to the replacement of the private activity tests in section 141 with a “vague and malleable public purpose standard.”
The letter is available here.
Read the full Wrap here