The Internal Revenue Service on Tuesday ruled against a California tribe seeking to finance a project using tax-exempt bonds.

The Cabazon Band of Mission Indians issued $145 million in tax-exempt bonds to expand it casino. But the IRS said the project was not an "essential government" one, The Los Angeles Times reported.

"We are not OK with tribes issuing tax-exempt bonds for commercial tourist facilities," IRS chief auditor Charles Anderson told the paper.

The IRS previously ruled against the Seminole Tribe of Florida and is targeting other tribes who finance projects with tax-exempt bonds.

Get the Story:
Tribes Seek State Law Granting Tax Breaks to Expand Resorts (The Los Angeles Times 4/13)
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Relevant Documents:
IRS Letter | Senate Testimony

Relevant Links:
Tax Exempt Bond Community - http://www.irs.gov/taxexemptbond

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