The Agua Caliente Band of Cahuilla Indians of California is fighting the Internal Revenue Service over tax-exempt bonds.

The IRS has been going after tribes for using bonds to finance projects such as hotels and golf courses. The agency claims the facilities don't qualify for a governmental tax exemption.

The Agua Caliente Band used $22.5 million in bonds to finance the Canyon South Golf Course in Palm Springs. The IRS issued a "proposed adverse determination" against the project last September, The Bond Buyer reported.

Congress has considered bills to ensure that tribes can issue tax-exempt bonds but none have become law.

Get the Story:
Calif. Tribe Appeals IRS Golf Ruling (The Bond Buyer 7/17)

IRS Memo:
INTERNAL REVENUE SERVICE NATIONAL OFFICE FIELD SERVICE ADVICE (August 12, 2002)

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