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Tax Policy: Use of Tax-Exempt Bonds in Oakland, California

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Report Type Reports and Testimonies
Report Date July 24, 1986
Report No. GGD-86-110BR
Subject
Summary:

In response to a congressional request, GAO provided information on the use of tax-exempt bonds by Oakland, California, specifically: (1) transactions to sell and lease back city assets; and (2) allegations that Oakland planned to use bonds to give the Oakland Athletics baseball team a loan.

GAO found that: (1) between 1983 and 1986, Oakland sold 18 tax-exempt bond issues totalling $589 million; (2) the issued bonds will cost the U.S. Treasury and the State of California $91 million and $19 million, respectively, in foregone income tax revenues; and (3) the tax law concerning the loan transaction Oakland is considering is unclear. GAO concluded that Congress may want to clarify its intent on the use of tax-exempt financing to support private-purpose loans.

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