Purpose And Scope

Under the provision of the Federal Tax Reform Act of 1986, each state is provided a unified volume limitation or cap covering certain tax-exempt bonds, known as private activity bonds. In order to fairly allocate this limited source of authority to fund certain governmental activities on a maximum utilization, the Commissioner will prepare a yearly allocation plan which meets the following goals: (1) Provides equal access to the state bond authority for large cities, small towns and rural areas; and (2) Provides the most benefit to the state from the bond authority available to it.