15.2-5001 - Purpose of chapter. - Virginia Statutes

§ 15.2-5001. Purpose of chapter.

It is the intent of the legislature by the passage of this chapter toallocate Virginia's total private activity bond issuing authority to thoseissuing authorities empowered to issue private activity bonds.

The Tax Reform Act of 1986 imposes restrictions on the issuance of bondsdesignated in the Act as "private activity bonds." These restrictionsinclude limitations on the aggregate amount of private activity bonds thatmay be issued in each state in any calendar year that may be regarded asexempt from federal income taxation. Section 146 (e) of the Tax Reform Act of1986 provides the authority for each state to establish a system for theallocation of the state ceiling on private activity bonds.

It is the intent of the legislature to provide for the allocation of thestate ceiling among issuers of such bonds in a manner which will promote thepublic purposes and maximize the public benefits created by the issuance ofsuch bonds.

(1987, c. 306, § 15.1-1399.11; 1997, c. 587; 2008, c. 445.)