Virginia Code 15.2-5001: Purpose of chapter
It is the intent of the legislature by the passage of this chapter to allocate Virginia’s total private activity bond issuing authority to those issuing authorities empowered to issue private activity bonds.
Terms Used In Virginia Code 15.2-5001
- Issuing authority: means any political subdivision, governmental unit, authority, or other entity of the Commonwealth which is empowered to issue private activity bonds. See Virginia Code 15.2-5000
- Private activity bond: means a part or all of any bond (or other instrument) required to obtain an allocation from the state's volume cap pursuant to § 146 of the Internal Revenue Code of 1986, as amended, in order to be tax exempt, including but not limited to the following:
1. See Virginia Code 15.2-5000
- State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245
- State ceiling: means the maximum amount of private activity bonds that the Commonwealth of Virginia may issue in a calendar year as limited by federal law under the Internal Revenue Code of 1986, as amended. See Virginia Code 15.2-5000
The Tax Reform Act of 1986 imposes restrictions on the issuance of bonds designated in the Act as “private activity bonds.” These restrictions include limitations on the aggregate amount of private activity bonds that may be issued in each state in any calendar year that may be regarded as exempt from federal income taxation. Section 146 (e) of the Tax Reform Act of 1986 provides the authority for each state to establish a system for the allocation of the state ceiling on private activity bonds.
It is the intent of the legislature to provide for the allocation of the state ceiling among issuers of such bonds in a manner which will promote the public purposes and maximize the public benefits created by the issuance of such bonds.
1987, c. 306, § 15.1-1399.11; 1997, c. 587; 2008, c. 445.