City of New York v. Commissioner
United States Tax Court
Petitioner, a municipal corporation of the State of New York, seeks a declaratory judgment that the bonds it proposes to issue will be exempt from taxation under sec. 103(a), I.R.C. Petitioner proposes to use $ 15 million of the $ 100 million bond issuance to finance advances to nongovernmental borrowers for purposes of rehabilitating low-income housing units.
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Petitioner, a municipal corporation of the State of New York, seeks a declaratory judgment that the bonds it proposes to issue will be exempt from taxation under sec. 103(a), I.R.C. Petitioner proposes to use $ 15 million of the $ 100 million bond issuance to finance advances to nongovernmental borrowers for purposes of rehabilitating low-income housing units. The advances will be structured as loans that must be repaid in full by the borrowers, and will bear interest rates below the market rate reflected in the yield on the bonds. Held, petitioner may not use time value of money principles…
1Opinion of the Court
OPINION
Hamblen, Chief Judge:
This is an action for declaratory judgment pursuant to section 7478.1 Petitioner requested respondent to rule that general obligation bonds (bonds) in the face amount of $100 million that petitioner proposes to issue will be obligations described in section 103(a), so that the interest thereon will be excludable from the bondholders’ gross income. After administrative review, respondent denied petitioner’s request on the grounds that the proposed bonds are private activity bonds within the meaning of section 141(a)(2).
All of the jurisdictional requirements for a…
2Cases cited25 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Badaracco v. CommissionerSupreme Court of the United States · 1984
- Commissioner v. BrownSupreme Court of the United States · 1965
- Commissioner v. National Alfalfa Dehydrating & Milling Co.Supreme Court of the United States · 1974
- Humes v. United StatesSupreme Court of the United States · 1928
20 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- Acm Partnership, Southampton-Hamilton Company, Tax Matters Partner, in No. 97-7484 v. Commissioner of Internal Revenue Acm Partnership, Southampton-Hamilton Company, Tax Matters Partner v. Commissioner of Internal Revenue, in No. 97-7527Court of Appeals for the Third Circuit · 1998
- City of New York v. Commissioner of Internal RevenueCourt of Appeals for the D.C. Circuit · 1995
- ASAT, Inc. v. CommissionerUnited States Tax Court · 1997
- Anderson v. Comm'rUnited States Tax Court · 2004
- Fincher v. CommissionerUnited States Tax Court · 1995
18 more not listed; retrieve them via the Exa API.