Private Activity Bonds financial definition of Private Activity Bonds. Private Activity Bonds finance term by the Free Online Dictionary.

Private Activity Bond

A tax-exempt municipal bond in which a local government entity is seeking to raise money for a private company. A municipality issues a private activity bond when it wishes to attract a business and the jobs it brings to the area, especially when the business may be otherwise unable to obtain financing for the project. The municipality issuing the bond must be able to prove that a public benefit derives from the private activity bond in order to qualify for tax-exempt status. Private activity bonds generally are not guaranteed by the revenue of the municipality.

private activity bond

A type of municipal bond issued when funds are to be used for a nonessential purpose. Private activity bonds pay taxable interest unless specifically exempted by the federal government. Private activities for which tax-exempt bonds may be issued include airports, electric and gas distribution systems, government mass transportation systems, hazardous waste disposal facilities, solid waste disposal facilities, and student loans. Small issues of industrial development revenue bonds and nonprofit college and hospital bonds are also permitted. Except for nonprofit college and hospital bonds, interest from tax-exempt private activity bonds is subject to the alternative minimum tax. Also called nonessential function bond, private purpose municipal bond. Compare essential function bond. See also 501(c)(3) bond, municipal bond, small-issue bond.

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501(c)3 Bond alternative minimum tax Essential Function Bond Essential Purpose Bond Industrial Development Bond Nonessential Function Bond pollution control bond Private Purpose Municipal Bond Private-Purpose Bond Taxable Municipal Bond	would remove issuances of private activity bonds for water and wastewater projects from the annual state volume caps, allowing local communities to leverage private capital markets in combination with other financial mechanisms to finance water and wastewater infrastructure projects. Senate, House introduce water infrastructure legislation by Berndt, Carolyn / Nation's Cities Weekly Byline: John Balian and Leslie Sobol Few business owners consider bonds to finance the purchase of industrial real estate and equipment because not many CPAs are aware of private activity bonds. Bonds are option for businesses in Valley by Daily News (Los Angeles, CA) 4 percent) of total tax-exempt bond proceeds, while private activity bonds accounted for the remaining $137. Tax-exempt bonds, 2007 by Shammas, Emily / Statistics of Income. SOI Bulletin	principle of balance Principle of Diversification Print Print Advertising Weight Printing Block Printing on the O prior appropriation theory Prior Income Prior Insurance Prior Lien prior period adjustment Prior Preferred Prior Preferred Stock Prior-Lien Bond Prior-Preferred Stock Prioriteitsaandeel priority Priority Foreign Country Priority List Priority of Lien Priority of Tax Lien Prisoner's Dilemma privacy law Private Accountant Private Activity Bond Private Activity Bonds Private Bank Private Banker Private Banking Private Branding private covenant Private Equity Private Equity Firm Private Export Funding Corporation Private Investment Fund Private Investment In Public Equities Private Investment in Public Equity Private Law private letter ruling Private Limited Partnership Private Market Value private mortgage insurance private offering Private Placement Private Placement Memorandum Private Purpose Municipal Bond private REIT private sector Private Unrequited Transfer Private Unrequited Transfers Private Voluntary Organization	Private (disambiguation) Private (disambiguation) Private (disambiguation) Private (disambiguation) Private (Java) Private (rank) Private 1st Class private a private a private a private a's private a's private a's Private Academic Library Network of Indiana Private Access Branch Exchange Private Access Code Private Access Communications Terminal Private Access Mobile Radio Private Access Provider Private Account Private Accountant Private Accountants Private Accusation Private act Private act Private act Private Activity Bond Private Activity Bond Private Activity Bond Cap Private Activity Bond Volume Cap Private Activity Bonds private address ranges private addresses Private Administrative Procedure Private Adoption Private Adoption Agency Reimbursement Program Private Advanced Radio Service private affair Private Agencies Collaborating Together private aid to navigation Private Aids to Navigation Private Aircraft Enforcement System Private Analogue Branch Exchange Private and Boarding Schools' Organisation Nepal Private and Confidential private antigens private antigens private antigens Private Arbeitsvermittlung Deutschland private area Private Area Branch Exchange Private army Private army Private attorney general Private Attorney General Act of 2004 Private Attorneys General Private Automated Branch eXchange Private Automatic Branch eXchange Private Automatic Branch eXchange

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References in periodicals archive

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501(c)3 Bond
alternative minimum tax
Essential Function Bond
Essential Purpose Bond
Industrial Development Bond
Nonessential Function Bond
pollution control bond
Private Purpose Municipal Bond
Private-Purpose Bond
Taxable Municipal Bond

would remove issuances of private activity bonds for water and wastewater projects from the annual state volume caps, allowing local communities to leverage private capital markets in combination with other financial mechanisms to finance water and wastewater infrastructure projects.

Senate, House introduce water infrastructure legislation by Berndt, Carolyn / Nation's Cities Weekly

Byline: John Balian and Leslie Sobol Few business owners consider bonds to finance the purchase of industrial real estate and equipment because not many CPAs are aware of private activity bonds.

Bonds are option for businesses in Valley by Daily News (Los Angeles, CA)

4 percent) of total tax-exempt bond proceeds, while private activity bonds accounted for the remaining $137.

Tax-exempt bonds, 2007 by Shammas, Emily / Statistics of Income. SOI Bulletin

principle of balance

Principle of Diversification

Print Advertising Weight

Printing Block

Printing on the O

prior appropriation theory

Prior Income

Prior Insurance

Prior Lien