Tax Policy:

Tax-Exempt Bond Issuance Costs

GGD-90-9BR: Published: Dec 18, 1989. Publicly Released: Dec 18, 1989.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed state and local governments' tax-exempt bond issuance costs and how proposed legislation would affect those costs.

GAO found that: (1) issuance costs from bonds sold to private enterprises in 1985 ranged from 2.2 to 4.1 percent of bond proceeds; (2) bond underwriter spreads comprised 48 to 88 percent of issuance costs, although underwriting spreads decreased by about 40 percent from 1982 to 1988; (3) additional issuance cost limits did not seem justified, since underwriting services were relatively competitive and reasonably priced; (4) the proportion of private enterprise bonds which would have exceeded the proposed cost limits was 44 percent for 1985 and 37 percent for 1986; and (5) the proposed issuance cost limits could reduce state and local governments' bond issuance capabilities, unless bond issuers developed alternative cost distribution and classification methods.

Jun 30, 2015

Jun 24, 2015

Jun 17, 2015

May 29, 2015

May 15, 2015

Apr 30, 2015

Mar 27, 2015

Mar 16, 2015

Feb 27, 2015

Looking for more? Browse all our products here