California Health Facilities Authority v. Commissioner
United States Tax Court
P proposes to issue bonds pursuant to an indenture between P and a corporate trustee and seeks a declaratory judgment that such bonds would be described in sec. 103(a), I.R.C. 1986. Net bond proceeds will be deposited with lenders pursuant to a lender loan agreement and the lenders will loan the proceeds to hospitals specified by P under terms specified by P. The lender loan agreement gives P firm control over the use of the bond proceeds.
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P proposes to issue bonds pursuant to an indenture between P and a corporate trustee and seeks a declaratory judgment that such bonds would be described in sec. 103(a), I.R.C. 1986. Net bond proceeds will be deposited with lenders pursuant to a lender loan agreement and the lenders will loan the proceeds to hospitals specified by P under terms specified by P. The lender loan agreement gives P firm control over the use of the bond proceeds. At least 95 percent of the net bond proceeds will be used for the exempt purpose of "hospitals" as that term is used in sec. 145(b) and will not be used in…
1Opinion of the Court
OPINION
WILLIAMS, Judge:*
The Commissioner determined that certain obligations that petitioner proposes to issue would not be described in section 103(a).1 Petitioner seeks a declaratory judgment of this Court pursuant to section 7478 that the proposed obligations will be described in section 103(a) with the result that interest paid on the obligations would be excludable from a bondholder’s gross income.
This case was submitted on the stipulated administrative record pursuant to Rules 1222 and 217(b). The facts and representations contained in the administrative record are assumed to be true.…
2Cited by2 opinions
- California Health Facilities Authority v. CommissionerUnited States Tax Court · 1988
- City of Columbus v. CommissionerUnited States Tax Court · 1998