Political Subdivision

A division of any state or local governmental unit which is a municipal corporation or which has been delegated the right to exercise a sufficient part of the sovereign power of the unit.

See Also


A state, political subdivision, agency or authority that borrows money through the sale of bonds or other securities. 

Shamberg Powers

The powers identified in Commissioner v. Shamberg’s Estate, 144 F.2d 998 (2d Cir. 1944) as the powers used to identify what is a political subdivision of a state or local governmental entity in the United States, specifically, the power of eminent domain, the power to tax, and the police power.


  • Comments

Response to IRS Implementation of E.O. 13789 on Reducing Tax Regulatory Burdens (Notice 2017-38)

Response to Internal Revenue Service (IRS) Notice 2017-38, Implementation of Executive Order 13789 (Identifying and Reducing Tax Regulatory Burdens).

  • Comments

Response to Proposed Definition of Political Subdivision (Reg-129067-15)

In response to the Internal Revenue Service’s (IRS’s) proposed definition for “Political Subdivision” (REG-129067-15), NABL sent comments and requested the opportunity to speak at a public hearing scheduled for June…

  • Comments

Suppl. Response to IRS TAM On Political Subdivisions (TAM 2013)

Memorandum to supplement prior comments, dated November 21,2013, regarding concerns raised by the analysis set forth in Technical Advice Memorandum 201334038, dated August 23, 2013 (the “TAM”), with respect to…

  • Comments

Request for Guidance on Definition of Political Subdivision (November 2013)

Request for guidance on whether an issuer with a limited number of property owners, electors or taxpayers is a political subdivision for purposes of section 103 of the Internal Revenue…

  • Comments

Letter to IRS TEB on Political Subdivisions (October 2012)

letter relating to a position reportedly being taken by the Internal Revenue Service (IRS) tax-exempt bond enforcement division (“TEB”) regarding the definition of “political subdivision” for purposes of Section 103(a)…

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Registered Bond

A bond whose owner is designated on records maintained for this purpose by a registrar, often the paying agent or trustee.