Laserfiche WebLink
TAX EXEMPTION <br />Federal Income Tax Matters <br />On the date of delivery of the Series 1992 Bonds, Rhoads & Sinon, Boca Raton, Florida, Bond <br />Counsel, will issue an opinion to the effect that under existing statutes, regulations and judicial decisions, <br />interest on the Series 1992 Bonds is excluded from gross income for purposes of federal income taxation and <br />is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals <br />and corporations, but that in the case of corporations (as defined for federal income tax purposes), such <br />interest is taken into account in determining adjusted current earnings for purposes of such alternative <br />minimum tax. <br />The opinion summarized in the preceding paragraph is subject to the condition that the County <br />comply with all requirements of the Internal Revenue Code of 1986, as amended, and applicable regulations <br />promulgated with respect thereto (the "Code"), that must be satisfied subsequent to the issuance of the Series <br />1992 Bonds in order that the interest thereon be and continue to be excluded from gross income for federal <br />income tax purposes. The County has covenanted to comply with all such requirements, which include, inter <br />alia, restrictions upon the yield at which proceeds of the Series 1992 Bonds and other money held for the <br />payment of the Series 1992 Bonds and deemed "proceeds" thereof may be invested and the requirement to <br />calculate and rebate any arbitrage that may be generated with respect to investment attributable to the Series <br />1992 Bonds. Failure to comply with such requirements could cause the interest on the Series 1992 Bonds <br />to be included in gross income retroactive to the date of issuance of the Series 1992 Bonds. <br />Ownership of the Series 1992 Bonds may result in collateral federal income tax consequences to <br />certain taxpayers, including, without limitation, financial institutions, property and casualty insurance <br />companies, certain Subchapter S corporations with substantial passive income and Subchapter C earnings and <br />profits, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be <br />deemed to have incurred or continued indebtedness to purchase or carry the Series 1992 Bonds. Bond <br />Counsel will express no opinion as to such collateral tax consequences, and prospective purchasers of the <br />Series 1992 Bonds should consult their tax advisors. <br />The County has covenanted, and will issue its certificate to the effect, that on the basis of the facts, <br />estimates and circumstances in existence on the date of delivery of the Series 1992 Bonds, the proceeds of <br />the Series 1992 Bonds will not be used in a manner that would cause the Series 1992 Bonds to be or become <br />"arbitrage bonds". In the opinion of Bond Counsel, based upon the facts, estimates and circumstances set <br />forth in said certificate, the Series 1992 Bonds are not presently "arbitrage bonds" under existing statutes, <br />regulations and decisions. <br />No representation is made or can be made by the County or any other party associated with the <br />issuance of the Series 1992 Bonds as to whether or not any legislation now or hereafter introduced and <br />enacted will be applied retroactively so as to subject interest on the Series 1992 Bonds to inclusion in gross <br />income for Federal income tax purposes or so as to otherwise affect the marketability or market value of <br />the Series 1992 Bonds. <br />Enactment of any legislation that subjects the interest on the Series 1992 Bonds to inclusion in gross <br />income for federal income lax purposes or otherwise imposes taxation on the Series 1992 Bonds or the <br />interest paid thereon may have an adverse effect on the market value or marketability. <br />Florida Tax Matters <br />On the date of delivery of the Series 1992 Bonds, Bond Counsel will issue an opinion to the effect <br />that under existing statutes, regulations and judicial decisions, the Series 1992 Bonds and the income <br />12 <br />