1989-042 - Laserfiche WebLink

Home Browse Search

No Competing Systems. To the full extent permitted by law, the County will not grant, renew, extend or allow to expand any franchise or permit for any system similar to the System within the service area of the System. TAX EXEMPTION In the opinion of Rhoads & Sinon, Boca Raton, Florida, Bond Counsel, assuming continuing compliance by the County with certain covenants to comply with provisions of the Internal Revenue Code of 1986, as amended (the "Code"), in order to preserve the federal income tax exemption of the interest on the Series 1989 Bonds, interest on the Series 1989 Bonds is exempt from present federal income taxes under existing statutes, regulations and decisions; provided, however, that such exemption does not extend to corporations to the extent that they are required to include such interest in the calculation and payment of alternative minimum taxes imposed under the Code, or the "Environmental Tax" under Section 59A of the Code, or to certain foreign corporations doing business in the United States of America to the extent that they are subject to the branch profits tax imposed under Section 884 of the Code. Further, interest on the Series 1989 Bonds is not an item of tax preference for purposes of calculating the federal alternative minimum taxes imposed on individuals and corporations. Interest on the Series 1989 Bonds is exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, banks, and savings associations. The County will issue its certificate to the effect that on the basis of the facts, estimates and circumstances in existence on the date of delivery of the Series 1989 Bonds, it is not expected that proceeds of the Series 1989 Bonds will be used in a manner that would cause the Series 1989 Bonds to be "arbitrage bonds" under Section 103(b)(2) of the Code, as contemplated by the United States Treasury regulations relating to "arbitrage bonds". Such certificate will be accompanied by an opinion of Bond Counsel, based upon the facts, estimates and circumstances set forth in said certificate, that the Series 1989 Bonds are not currently "arbitrage bonds," under existing statutes, regulations and decisions. Corporate Alternative Minimum Taxes; Environmental Tax; Branch Profits Tax Interest on the Series 1989 Bonds may be includible in a corporation's "adjusted net book income" or "adjusted current earnings" upon which alternative minimum taxable income is calculated for tax years beginning in 1987 and thereafter, and such interest may also be included in corporate alternative minimum taxable income that is subject to the environmental tax imposed under Section 59A of the Internal Revenue Code of 1986, as amended 32