government icon, source: Eyewire

General Government: Governmental Bonds

Limiting the tax-exempt status of certain governmental bonds could yield revenue.

Action:

Congress should consider whether facilities, including hotels and golf courses, that are privately used should be financed with tax-exempt governmental bonds.

Progress:

No legislative action was enacted as of March 2017. GAO suggested in February 2008 that as Congress considers whether tax-exempt governmental bonds should be used for professional sports stadiums that are generally privately used, it also should consider whether other privately used facilities, including hotels and golf courses, should continue to be financed with such bonds. A bill was introduced in Congress in February 2017 (H.R. 811) which, if enacted, would, in general, not allow tax-exempt government bonds to be used to finance professional sports stadiums.  Reconsidering the tax-exempt status of certain bonds could generate hundreds of millions of dollars in additional federal revenue.

Implementing Entity:

Congress
  • portrait of
    • James R. McTigue, Jr.
    • Director, Strategic Issues
    • mctiguej@gao.gov
    • (202) 512-9110