Thursday, July 17, 2008

Agua Caliente Tribe Fighting IRS for right to tax exempt bonds

Possibly another crack in the sovereignty dam:

The Agua Caliente Band of Cahuilla Indians is appealing the Internal Revenue Service's proposed adverse determination that $22.5 million of revenue bonds it issued in 2003 for a golf course project and recreation center are taxable - the latest development in a long-standing dispute over the kinds of projects tribal governments can finance with tax-exempt bonds.

The appeal was disclosed in a material event notice that the tribe filed yesterday with the nationally recognized municipal securities information repositories.
The bonds were issued to finance the renovation of the Canyon South Golf Course in Palm Springs, Calif., which is operated by the tribe; the construction and equipping of a clubhouse on the golf course; a community and recreation center for the tribe and related infrastructure, according to the notice.

I think the IRS may be looking at a loss on this one. They should be looking into the loss of taxable income from those Pechanga Tribal Members who were terminated during Pechanga's Indian Removal Era. (2004-2006)

Agua Caliente Story HERE

1 comment:

Anonymous said...


You will win on this one.