The members of the Minnesota congressional delegation from both parties sent a letter to Treasury Secretary Lew and Internal Revenue Service (IRS) Commissioner Koskinen, criticizing the IRS’s proposed rule on the definition of political subdivision (REG-129067-15). The delegation expressed concern that the proposed rule would affect the diverse array of entities that provide essential services to Minnesota communities. The delegation specifically pointed to the “incidental private benefit” portion of the proposed rule and the unclear provisions regarding voter control of a political subdivision, saying those provisions could bar many entities from accessing tax-exempt financing for community projects.
The letter is available here.