Private Activity Tax-Exempt Bonds, 1986

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By Gerald Auten and Edward Chung*

I n a reversal of the rapid upward trend of recent years, the

face amount of long-term private activity tax-exempt bonds

in 1986 decreased to $29.9 billion. This volume, which

represented a 75 percent decrease from the 1985 volume

of $122.0 billion was the smallest since 1981. (Private

activity bonds are bonds issued by State and local Governments that provide a benefit for private businesses, organizations, or individuals.) In contrast, the face amount of

public purpose tax-exempt bonds continued to increase in

1986 to $115.5 billion. However, as shown in Figure A, the

total dollar volume of all types of tax-exempt bonds declined

by 33 percent in 1986 to $145.7 billion [1].

The primary factor affecting the issuance of tax-exempt

bonds in 1986 was tax reform, which had four main effects:

1. The issuance of a considerable volume of tax-exempt

bonds was accelerated in 1985 in anticipation of

restrictions included in the House bill that went into

effect on December 31, 1985.

Figure A

Long-Term Tax-Exempt Bond Volume, 1977-1986

Billions of dollars

240

220

200

180

Public Activity

Private Activity

160

140

120

100

1977

1978

1979

1980

1981 1982 1983

Calendar Year

1984

1985

1986

*Gerald Auten, now on the faculty at Bowling Green State University, was formerly a financial economist with the Office of Tax Analysis, U. .

Department of the Treasury. Edward Chung is a statistician with the Foreign Special Projects Section, Foreign Statistics Branch, Statistics of Income

Division, Michael Alexander, Section Chief. Dorothy Wallace, Foreign Special Projects Section, contributed to this article.

Private Activity Tax-Exempt Bonds, 1986

2. From January 1986 until September 1986, when the

Tax Reform Act was passed, there was considerable

uncertainty as to how tax reform would affect taxexempt bonds issued in 1986 and later years. This

uncertainty discouraged the issuance of all taxexempt bonds, especially private activity bonds.

3. Uncertainty about the regulations implementing the

bill discouraged issuances in the last quarter of 1986.

4. Some of the provisions of the Tax Reform Act that

restricted issuance of tax-exempt bonds took effect as

soon as the bill was signed into law on October 22,

1986.

New Issues of Private Activity Bonds by Purpose

There are four main categories of tax-exempt private

activity bonds: student loan bonds; private exempt entity

bonds; mortgage revenue bonds; and industrial development bonds (ID13's), including bonds for multi-family rental

housing. The total volume of private activity bonds includes

the face amount of both new issues and refunding issues..

As shown in Figure B, the volume of new issues of

long-term private activity bonds in 1986 totaled $17.2 billion

[2]. The largest category was the $6.8 billion of small-issue

IDB's, which further regional economic development by

providing subsidized financing for construction and improvement of private business facilities that range from

manufacturing plants to shopping centers. Small-issue

IDB's are limited to issues of up to $1 million or up to $10

million over a 6-year period for facilities for the same

principal user in the same municipality or unincorporated

areas of a county. Congress limited the issuance of taxexempt small-issue IDB's after December 31, 1986, to

manufacturing facilities and repealed the tax-exemption

altogether for bonds issued after December 31, 1988.

Two types of tax-exempt bonds are intended to provide

subsidies for low-income housing. Qualified mortgage

bonds (also called mortgage revenue bonds or mortgage

subsidy bonds) are issued to fund mortgages for first-time

home buyers with low and middle incomes and home

buyers in certain designated low-income areas at belowmarket interest rates. Mortgage loans were required to be

made for houses costing no more than 110 percent of the

average area purchase price (120 percent in targeted

areas). New issues of qualified mortgage bonds amounted

to only $1.3 billion in 1986, compared with $13.9 billion and

$13.6 billion in 1984 and 1985, respectively. The provision

permitting these bonds to be tax-exempt was to expire on

December 31, 1988 [3].

In addition tax-exempt bonds valued at $1.5 billion were

issued to finance multi-family rental housing. Tax-exempt

IDB's could be used to finance multi-family housing

projects if at least 20 percent of the units (15 percent in

targeted areas) were set aside for low- or moderate-income

households with incomes below 80 percent of median

gross family income. The relatively small volume of new

issues in 1986 reflects the acceleration into 1985 (when the

volume amounted 'to $25.2 billion) of issues that would

normally have been made later.

Tax-exempt student loan bonds could be issued to

finance loans for financing post-secondary education expenses in connection with Guaranteed Student Loans and

Parent Loans for Undergraduate Students programs of the

U.S. Department of Education. In 1986, $1.7 billion of these

bonds were issued, a decline of 65 percent from 1985, but

still 24 percent more than in 1984.

Private exempt entity bonds are issued by State and local

Governments to finance the activities of charitable, educational, religious, and similar organizations that are taxexempt under section 501(c)(3) of the Internal Revenue

Code. The primary beneficiaries of these bonds are private,

nonprofit hospitals, colleges, and universities. In 1986, the

volume of new issues of private exempt entity bonds was

$2.5 billion, down from $25.7 billion in 1985.

Other industrial development bonds are issued to finance

certain other exempt activities, including airports, docks,

Figure B. - New Issue Private Activity Bond Volume, Calendar Years 1983-86

[Money amounts in millions of dollarsl

Type of bond

1983

1984

r1985

1986

(2)

(3)

(4)

Total .............................................................................

49,911

65,816

99,770

17,215

Student loan bonds ............................................................

Private emmpt entity bonds ...............................................

Qualified mortgage bonds' ................................................

Industrial development bonds, total ...................................

Small-issue ..................................................................

Multi-family rental housing ...........................................

Airports, docks, etc.' ..................................................

Sewage and waste disposal ........................................

Pollution control ...........................................................

Other ...................................... I ....................................

3,086

8,202

10,800

27,823

13,791

5,349

2,109

1,442

3,411

1,721

1,370

9,037

13,900

41.509

16,967

5,346

3,713

6,314

7,599

1,570

2,803

25,737

13,561

57,669

17,058

25,216

3,554

5,073

5,230

1,538

1 , 696

2, 545

1 , 319

11 . 656

6 , 781

1 , 501

463

1 ,307

1 ,274

330

Qualified mortgage figures for 1983 and 1984 are based on estimates developed by the Office of Tax Analysis, U. S. Department of the Treasury

2 Volume for new issues is the purchase

price of the bond minus any amount used to refund earlier obligations.

r - Revised

Private Activity Tax-Exempt Bonds, 1986

and wharves; sewage and waste disposal facilities; pollution control facilities; and mass transit, water, and heating

and cooling facilities. The volume of new issues of these

types of bonds declined in 1986.

future years, however, so that the end-of-the-year increase

in volume may simply reflect a normal seasonal pattern [4].

PRIVATE ACTIVITY BONDS BY STATE

VOWME OF ISSUES BY MONTH

The dollar volume of private activity bonds issued by

month in 1986 is shown in Figure C. Less than 5 percent of

the bonds were issued in the first 3 months of the year. In

contrast, almost 39 percent of the bonds issued in 1986

-more than $12.5 billion-were issued in December The

large volume at the end of 1986 suggests the possibility that

some State and local Governments attempted to issue

bonds before the stricter volume cap went into effect in

1987. Unused volume caps can be carried forward to

The per capita amounts of private activity bonds for the

10 States with the highest per capita volumes of issues are

shown in Figure D. Delaware and Alaska had the largest

per capita amounts of bonds. Each of these States issued

approximately $240 per capita of private activity bonds,

three times the national average of $71 per capita. Almost

all the bonds issued by Delaware were small-issue IDB's;

most of the bonds issued by Alaska were qualified mortgage bonds. Table 7 at the end of this article shows the

private activity bonds issued by type for each of the States.

Figure C

Private Activity Tax-Exempt Bond Volume By Month, 1986

Millions of Dollars

13.

1Z-

= F-1 E:1

Jan.

Feb.

March

1-1

April

May

June July August Sept.

Month

Oct.

Nov.

Dec.

Private Activity Tax-Exempt Bonds, 1986

Four States issued more than $1 billion in private activity

bonds: California, New York, Pennsylvania, and Texas.

SIZE OF ISSUES

A distribution of the main types of private activity bonds

by size of issue is shown in Table 5. The largest issues were

student loan and mortgage revenue bonds. The student

loan bond issues with face values of $50 million or more

-accounted for almost 90 percent of the total volume of

student loan bonds. For mortgage revenue bonds, nearly

two-thirds of the dollar volume was accounted for by issues

of $50 million or more. Most multi-family housing and

private exempt entity bonds were of intermediate size

(between $2 million and $50 million). The small-issue IDB's

were generally the smallest issues. Although two-thirds of

the small-issue IDB's were under $2 million in size, more

than two-thirds of the dollar volume was accounted for by

bonds with values between $2 million and $10 million.

MATURITIES OF ISSUES

Table 6 shows the distribution of the weighted-average

maturities of the major types of private activity bonds. Many

of the bond issues are serial bonds in which a percentage

of the bonds mature each year. Thus the average amount of

bonds outstanding over the life of the bond issue is only a

fraction of the face amount of the bond. The weighted

average maturity is calculated as the average maturity of

the new bonds with weights determined by the amount of

the bonds outstanding in each maturity class. The shortest

maturities are for student loan bonds, which have a mean

weighted-average maturity of 14 years. The longest maturities were reported for qualified mortgage revenue bonds,

with 70 percent reporting weighted-average maturities of 20

years or more.

THE TAX REFORM ACT OF 1986

The Tax Reform Act of 1986 included a number of

provisions that restrict both the supply of and the demand

Figure D.-States with the Largest Per Capita New Issues

of Private Activity Bonds, 1986

for tax-exempt State and local securities. These restrictions

reflect congressional concern about four undesirable effects stemming from the large and increasing volume of

tax-exempt bonds that were being issued under prior law:

[51:

1. The large volume of tax-exempt issues increased the

interest rates that State and local governments had to

pay to issue bonds for traditional governmental purposes.

The issuance of large volumes of private activity

bonds resulted in an inefficient allocation of capital,

because subsidized activities may be less productive

than competitive but unsubsidized activities.

3. The equity of the tax system was harmed as highincome individual and corporations limited their tax

liabilities by investing in tax-exempt bonds.

4. The increasing volume of private activity bonds resulted in mounting revenue losses to the Federal

Government. Because the tax rates are progressive

and because the large volume of tax-exempt bonds

had narrowed the interest rate spread between taxable and tax-exempt bonds, the revenue loss to the

Federal Government was considerably greater than

the interest saving to the State and local Governments.

The major provisions of the Tax Reform Act of 1986 that

restricted the issuance of tax-exempt bonds dealt with tightening the definition of governmental use as opposed to private activity bonds. The percentage of

proceeds of a governmental purpose bond that could

be used by a non-governmental person in any trade

or business, or secured by payments or property

used in a trade or business, was reduced from 25

percent to 10 percent.

restricting the purposes for which tax-exempt private

activity bonds could be issued. Tax-exempt private

activity bonds can no longer be used to finance

pollution control facilities, sports stadiums, convention

facilities, or parking facilities.

New issues of private activity bonds

Selected States

United States, total ......................

Delaware .................................................

Alaska .....................................................

Maine ......................................................

Montana ..................................................

Georgia ...................................................

Pennsylvania ...........................................

Mississippi ...............................................

Colorado .................................................

Missour

South Dakota ..........................................

Per capita

(dollars)

Total issues

(million dollars)

$71.41

240.13

239.70

169.65

123.32

117.63

117.51

116.57

114.78

99.49

98 87

$17,216

1128

199

101

720

1,397

306

375

504

Source: U.S. Department of Commerce, Bureau of the Census - Resident population for 1986;

Table 7.

imposing a single, unified volume cap by State for

most private activity tax-exempt bonds. The annual

State Volume cap was the greater of $75 per capita or

$150 million (face amount) in 1987 and $50 per

capita or $100 million (face amount) in 1988 and

thereafter. The volume cap applied to all private

activity bonds except those issued for tax-exempt

nonprofit hospitals and private universities and colleges; qualified veterans' mortgages; and publicly

owned airports, docks and wharfs,.and solid waste

facilities.

Private Activity Tax-Exempt Bonds, 1986

restricting advance refundings to governmental use

and private exempt entity bonds, and imposing a limit

of two advance refundings for issues for which taxexempt refundings are permitted.

turing facilities is set to expire on December 31, 1989. If

these provisions are allowed to expire, the volume of private

activity bonds can be expected to decline further after

1988.

tightening a number of restrictions on the ability of

State and local Governments to profit by issuing

tax-exempt bonds and investing the proceeds in

taxable investments with higher yields.

HIGHLIGHTS FOR 1986

not extending the December 31, 1986, cutoff date for

small-issue IDB's other than manufacturing facilities.

The cutoff date for issuing tax-exempt IDB's for manufacturing facilities was extended for 1 year to December 31, 1989.

A number of provisions in the Tax Reform Act of 1986

tended to reduce the demand for tax-exempt securities.

Most important, the reductions in marginal tax rates for both

individuals and corporations reduced the advantage of

holding tax-exempt securities. Another provision subjected

the interest on certain private activity bonds, otherwise

tax-exempt, to the alternative minimum tax at a 21 percent

tax rate for individuals and a 20 percent rate for corporations. This minimum tax would only be paid, however, if the

interest on these bonds plus other forms of "tax preferences" subject to this tax amounted to a significant percentage of total taxable income. Finally, banks were no longer

able to deduct the interest they pay when they borrowed to

finance the purchase of tax-exempt municipal bonds.

Conversely, the elimination of many other ways of sheltering income from tax under the 1986 tax reform caused

some investors to increase their purchases of tax-exempt

bonds. Similarly, the broadening of the corporate income

tax base could tend to induce some businesses to purchase tax-exempt bonds.

Other provisions of the Tax Reform Act of 1986 improved

the reporting of information on tax-exempt bonds beginning

in 1987. State and local Governments are required to file

Form 8038 information returns with the Internal Revenue

Service (IRS) for public purpose bonds issued after December 31, 1986, as well as for private purpose bonds. In

addition, individual taxpayers were required to report taxexempt interest on their individual income tax returns (Form

1040) beginning with 1987 returns. These two requirements will substantially improve and expand the information

available about tax-exempt bonds.

Several private activity bond provisions are scheduled to

expire in 1988 and 1989. The provision permitting issuance

of tax-exempt bonds for qualified mortgage subsidy bonds

was extended for 1 year by the Tax Reform Act of 1986, but

it is currently set to expire on December 31, 1988 [6]. The

exception permitting tax-exempt small IDB's for manufac-

A total of 5,220 information returns were filed for private

activity bonds issued in 1986. Some returns included

descriptions of more than one activity (multiple-lot issues),

thereby reducing the number of returns. But multiple

returns may be filed for a single activity when a bond is

refunded, especially in the case of short-term obligations

that have maturities as short as 1 day.

Table 1 (columns 4, 5, and 6) shows the total face amount

of new issues by type of private activity bond. The bonds

are further categorized into short-term obligations (with

maturities of 1 year or less) and long-term obligations. In

some cases, bonds issued to refund previous issues may

include a component of new-issue funding; this is included

in the new-issue. columns in Table 1. For example, a bond

issue with a $100 million purchase price sold to refund a

$95 million outstanding obligation would have $5 million of

new-issue volume. New-issue volume, therefore, represents

the net increase in private activity bonds excluding nonrefunded retirements.

Table 2 shows the relationship between the aggregate

face amount and lendable proceeds for long-term private

activity bonds. It also shows the purchase price allocations

to issuance costs and reserve or replacement funds as well

as the allocation of the lendable proceeds between refundings and non-refunding (new issue) proceeds. Issuance

costs averaged 1.3 percent of the purchase price for all

private activity bonds in 1986, compared with 2.6 percent

in 1985 [7]. In 1986, more than 45 percent of the lendable

proceeds were used to refund prior issues. Refunding

volume was most important for private exempt entity bonds

and qualified mortgage bonds, which accounted for more

than 60 percent of the total volume in both cases.

Table 3 shows the uses of the non-refunding lendable

proceeds for each of the types of IDB's. Almost 90 percent

of the proceeds were used for depreciable property. The

remainder was used for land and other property.

Table 4 shows the volume of industrial development

bonds and private exempt entity bonds by industry grouping. Table 5 shows private activity bonds by size of face

amount and by type of bond. Table 6 shows the distribution

of average maturities by type of bond issue.

Table 7 shows the new-issue volume by type of bond for

each State. No one type of bond was issued by every State,

and most States issued bonds in all the major categories.

Private Activity Tax-Exempt Bonds, 1986

The States with the largest total volumes were California

with $1.7 billion, New York with $1.5 billion, and Pennsylvania with $1.4 billion.

DATA SOURCES AND LIMITATIONS

Form 8038, Information Return for Private Activity Bond

Issues, has been required for all student loan bonds,

private exempt entity bonds, and IDB's since 1983. The

reporting of qualified mortgage bonds has been required

since 1984. The data in this article on private activity bonds

were extracted from the 5,219 returns filed with IRS for

1986.

Because the entire population of Forms 8038 was used

for this study, there is no sampling error A number of

checks were performed to ensure that each return was

internally consistent and to exclude duplicate and amended

returns. A certain amount of filer and processing error may

remain, however

DEFINITIONS

Private Activity Bonds.-Includes four types of taxexempt, State or local Government bonds issued for other

than public purposes: industrial development bonds, private exempt entity bonds, student loan bonds, and qualified mortgage bonds. Private activity bonds were classified

as short-term if their final maturity was 1 year or less from

their date of issue.

Industrial Development Bonds (IDB's).-State or local Government obligations, all or a major portion of the

proceeds of which are used in a private trade or business,

with payments of principal and interest secured by the

property used in a private trade or business. Under the

small-issue exemption in effect in 1986, virtually any private

trade or business could finance depreciable property or

land with an IDB, if the bond's face amount did not exceed

$1 million or $10 million including related capital expenditures during a 6-year period beginning 3 years before and

ending 3 years after the date of issue.

Private Exempt Entity Bonds.-State or local Government obligations issued for use by tax-exempt charitable,

religious, educational, and similar organizations (described

in Internal Revenue Code section 501 [c][3]). Most were for

use by private, nonprofit medical facilities, colleges, and

universities.

Qualified Mortgage Bonds.-State and local Government obligations issued to finance mortgages for owneroccupied residences. In general, the loans, had to be made

to new homeowners and purchasers of homes in designated low-income areas. Restrictions also applied to the

purchase price of the residence and the income of the

recipients of the mortgage loans.

Residential Rental Housing Industrial Revenue

Bonds.-IDB's issued to finance multi-family residential

rental projects. In general, at least 20 percent of the units in

the project financed (15 percent in certain targeted areas)

had to be set aside for lower-income individuals or families

with incomes below 80 percent of median family income.

Student Loan Bonds.-State or local Government obligations issued to finance the post-secondary education

expenses of individuals.

NOTES AND REFERENCES:

[1) Estimate made by the Office of Tax Analysis, U.S.

Department of the Treasury. See U.S. Office of Management and Budget, Special Analyses: Budget of the

United States Government, FY 1989, Special Analysis

F, Table F-1 7.

[2] Although Figure B shows only new issues of private

activity bonds, the volume of current and advance

refunding issues is nearly equal to the volume of new

issues. Such refundings are generally undertaken to

refinance at interest rates lower than those specified

by the original issue. The dollar value of refunding

issues can be computed as the difference between.

total issues and new issues as shown in Table 1.

[3] U.S. General Accounting Office, Resources, Community and Economic Development Division, Home Ownership: Mortgage Bonds Are Costly and Provide Little

Assistance to Those in Need, Report to the Chairman,

Joint Committee on Taxation, U.S. Congress, March

1988.

[4] This monthly pattern may be similar for prior years as

well. For 1983, When the only other year for which this

information was tabulated, nearly one-fourth of the

total volume occurred in December. See Clark, Philip,

and Neubig, Tom, "Private Activity Tax-Exempt Bonds,

1983:' Statistics of Income Bulletin, Summer 1984,

Vol. 4, No. 1.

[5] U.S. Congress, Joint Committee on Taxation, General

Explanation of the Tax Reform Act of 1986, May 4,

1987.

[6] As this article was in preparation, Congress was

considering a 2-year extension of tax-exempt mortgage revenue bonds.

[7] See Clark, Philip, "Private Activity Tax-Exempt Bonds,

1985:' Statistics of Income Bulletin, Spring 1987, Vol.

7, No.1, Table 2.

Private Activity Tax-Exempt Bonds, 1986

Table I.-Volume of Private Activity Bonds by Type of Activity

[Money amounts in millions of dollars]

Ail lasms'

Type of activity

Total

New IsSU882

Shortterm

Longtam

TOW

Shortterm

(2)

(3)

(4)

(5)

(6)

Lorgterm

Total .................................................................

32.472

2,535

29,937

17,215

433

16,782

Student loan bonds ................................................

2,557

570

1,987

1.696

244

1,452

Private exempt entity bonds ...................................

6.554

201

6,353

2,545

2,487

Qualified mortgage bonds".... ................................

5,325

1,319

Industrial development bonds:

Industrial park .....................................................

Small issue..........................................................

Multi-family rental housing ..................................

7,853

7,819

2,299

1,067

2,176

2,367

151

126

6,781

1.501

463

1,307

1.274

(5)

125

6,754

1,501

417

1,262

(5)

125

Sports facilities ....................................................

Convention facilities ............................................

Airports, docks, etC.4 .........................................

Sewage and waste disposal facilities ..................

Pollution control facilities .....................................

Water furnishing facilities ....................................

Hydroelectric generating facilities .......................

Mass commuting vehicles ..................................

............

Local heating and cooling facilities

Electric energy and gas facilities ........................ 1

2,301

2,588

2,222

2,380

154

272

1,521

146

I Volume for all issues is the face amount of the bond.

2 Volume for new issues is the purchase price of the bond minus any amount used to refund earlier obligations.

3 Includes qualified veterans' mortgage bonds.

' Includes wharves, mass commuting facilities, parking facilities, or storage facilities directly related to arry of the preceding.

5 Less than S500,000.

NarE: Detail may not add to totals because of rounding.

Table 2.-Computation of Nonrefunding Lendable Proceeds for Long-Term Private Activity Bonds, by Type of Bonds

[Money amounts in millions of dollars]

Type of bond

Item

Total

student

10,

private

exer

Oualified

=Re

Industrial development bonds

small issm

Other

(1)

(2)

(3)

(4)

(5)

(6)

Face amount ..........................................................

29,937

1.987

6,353

5,325

7,819

8.453

Purchase price .......................................................

29,849

1,953

6.317

5,322

7,812

8,446

Bond issuance costs ..............................................

404

133

138

101

Allocations to reserve or replacement funds ..........

218

124

176

Lendable proceeds ................................................

28,746

1,856

5,966

5,113

7,587

8,224

Proceeds used to refund prior issues .................

13,067

501

3,830

4,003

1,058

3,676

Nonrefunding lendable proceeds .......................

15,679

1.356

2,136

1,110

6,529

4,549

' Includes qualified veterans' mortgage bonds.

NOTE: Detail may not add to totals because of rounding.

Private Activity Tax-Exempt Bonds, 1986

Table 3.-Nonrefunding Lendable Proceeds from Sales of Long-Term Bonds, by Type of Property Financed

[Money amounts in millions of dollars]

Type of industried devetopment bond

Toted

%ft,.

famly.

small issue

PrWft emmpt entity

lype ol Property financed

Amount

Percent

Amount

Percent

Amount

Percent

ArniKint

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(a)

14,139

100

1,758

100

6,486

100

1,377

100

3-year ACRS ............................

5-year ACRS ............................

10-year ACRS ..........................

15-year ACRS ..........................

18-year ACRS ..........................

2,041

962

2,736

6,803

233

162

1,032

(1)

996

115

310

4,121

131

1,021

(1)

Land .......................................................

Other property .......................................

Other uses .............................................

834

552

120

156

570

257

122

Total .......................................

Percent

Depreciable property:

Type of Industried development borxl~-~tinued

sewage. waste

Sports and

conven tion

lvp%:=rly

and

Alq=

Other

1?0

Amount

Percent

Amount

Percent

Annotint

Percent

Amotm!

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

100

1,732

100

230

100

2,495

100

3-year ACRS ............................

5-year ACRS ............................

10-year ACRS ..........................

15-year ACRS ..........................

18-year ACRS ..........................

1,293

295

740

769

668

295

Land.......................................................

Other property .............................

Other uses .............................................

Total .......................................

Percent

Depreciable property:

(1)

1 Includes wharves, mass commuting facilities, or storage facilities directly related to arry of the preceding.

(1)

167

(1)

2 Consists-of industrial parks, water furnishing facilities, hydroelectric generating facilities, mass commuting vehicles, local heating and cooling facilities, and facilitiesfor the local furnishing of electrical energy

orpas.

Less than $500,000.

NCYIFE: Detail may not add to totals because of rounding.

ACRS is the Accelerated Cost Recovery System of depreciating property for tax purposes.

Private Activity Tax-Exempt Bonds, 1986

Table 4.-Volume of Industrial Development Bonds and Private Exempt Entity Bonds, by Industry'

(Money amounts in millions of dollars]

Indutrtrial development bonds

Industry

small Issue

Private istempt

9" bonds

other

Amount

Percent

Amount

Percent

Amount

(1)

(2)

(3)

(4)

(5)

(6)

All Industries .....................................

Agriculture, forestry, and fishing .............................

6,315

100.00

.95

4,486

100.00

2,140

100.00

.78

Mining ....................................................................

.29

(2)

.88

.29

Construction ...........................................................

Manufacturing

Food and kindred products ............................

Textile products ................................................

Lum bar, wood products, and furniture ............

Paper and allied Products ...............................

Printing and publishing...................................

Chemicals and allied products ........................

Rubber and miscellaneous plastics products.

Stone, clay, and glass products ......................

Primary metal industries ..................................

Fabricated metal products ..............................

Machinery, except electrical ............................

Electrical and electronic equipment . ...............

Transportation equipment ................................

Other manufacturing .......................................

1.28

(2)

.75

181

157

109

110

145

199

130

103

125

2.86

1.33

2.49

1.16

1.73

1.74

2.29

.85

.51

3.15

1.09

2.07

1.93

-1

(2)

.03

(2)

-3

104

Transportation

Trucking and warehousing ..............................

Transportation by air ........................................

Other transportation ........................................

160

2.53

.06

.59

336

.04

7.48

1.01

22,555

.36

2,321

51.73

236

223

3.73

.42

Electric, gas, and sanitary service .........................

Wholesale trade

Durable goods ................................................

Nondurable goods.. ........................................

Retail trade

General merchandise stroes ...........................

Food stores .....................................................

Other retail trade .............................................

1.40

1.25

3.a3

1.49

.......................................................

1.485

23.52

Services

Hotels and other lodging places .....................

Personal and business services ......................

Medical and health services ...........................

Educafional services .......................................

Other services ................................... .............

.849

766

164

13.44

1.51

12.13

.18

2.60

Other industries ................. ....................................

.42

Finance and insurance ..........................................

Real estate

24T

' Consists of the nonrefunding lendable proceeds of the bonds.

2 Less than 0-005 percent.

3 Less than $500,000.

NOTES: Detail may not add to totals because of rounding.

(2)

Percent

.04

.20

.02

1.82

.07

.04

1.46

-2.32

.40

.02

.04

.02

.03

.06

.03

2.40

30.07

-36

.14

.19

80.75

10.49

4.63

1,728

224

.02

.09

.81

.49

.34

Private Activity Tax-Exempt Bonds, 1986

Table S.-Number and Face Amount of Private Activity Bond Issuances, by Type and Size of Face Amount

[Money amount in millions of dollars)

Faoe amount by type of bond

Total

number of

bond

Issuranoes

TOW face

amount

(1)

(2)

5,220

191

1,013

2a5

$5DO,ODO under $1.000.000 ..................

$1,000,000 under $2,000,000 ...............

821

$2,000,000 under $5,000.000 ...............

SIM of

taoe amount

Sbudent

it=

private

exempt

entity

Ouslifled

mortgaw

small

Issue

Rental

All

other

(3)

(4)

(5)

(6)

(7)

(a)

32,475

207

6,554

5,286

7,855

2,301

7,921

(1)

264

(1)

536

919

580

1.249

1,113

1,055

3,384

247

2.723

136

248

$5,000,000 under $10,000.000 .............

601

4,225

359

2,979

230

3,142

745

230

$20.000,000 under $50,000,000 ...........

235

7.057

196

2,193

475

1,280

483

776

339

$10.000,000 under $20,006,ODO ...........

$50,000,ODO under $100,000,000

6,373

$100,000,000 or more ...........................

6,168

1,237

1,049

1,878

1.063

Total ........................................

Under $100,DDO ....................................

$11200,13000 under $SOD,ODO .....................

600

879

2.712

676

194

1,606

1,457

2,201

1,a56

I Low than $500,000.

NOTE: Detail may riot add to totals because of rounding.

Table 6.-Number and Face Amount of Private Activity Bonds, by Weighted Average Maturity and Type of Bond

(Money amounts in millions of dollars]

Face amount try " of bond

Weighted av-P Maturity

In years

TOW

number

of bond

issuarxxrs~

Total

faCe

amunt

Student

loan

Private

exempt

entity

Oualified

mortgalie

Small

issue

IDB

Rental

other

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Total ...................................

5,220

32,475

2,557

6,554

5,286

7,855

2,301

7,921

Less than 5 .....................................

403

2,833

571

286

216

1,754

5 under 10 ......................................

1,205

2,772

441

487

1,624

144

10 under 15 ....................................

1,187

4,157

418

873

648

1,598

275

345

15 under 20 ....................................

1,047

6,605

176

1,943

876

1,386

496

1,727

20 under 25 .....................................

810

7,095

380

1,628

1,336

1,598

985

1,167

25 under 30 ....................................

247

3,130

498

789

586

166

1,091

30 or more ......................................

321

5.884

571

840

1,587

846

347

1,693

Mean of the weighted average

maturity in years .................................

N/A

NIA Not applicable

NOTE: Detail may not add to totals because of rounding.

14.0

18.9

23.5

16.4

21.3

18.2

Private Activity Tax-Exempt Bonds, 1986

Table 7.-Volume of New Issue Private Activity Bonds by Type of Bond and State

[Money amounts in millions of dollars]

Volume by typs of bond

Industrial developniant bonds

State

Total

Student

loan

Private

exampt

entity

Oualified

Small I=*

industr a

i l

Park

Multifamil y

housing

Sports and

cwvendw

sewage

Other

Pollution

oontrol

t a)

Zsasose

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(a)

(9)

(10)

Total ...........................

17,215

1,696

2,S45

1,319

6,832

1,501

1,307

1,274

219

Alabama..................................

Alaska ................. ...................

Arizona....................................

Arkansas .................................

California .................................

Colorado .................................

Connecticut .............................

Delaware .................................

Florida .....................................

Georgia ...................................

Hawaii .....................................

Idaho.......................................

Illinois .................................. -.

Indiana ....................................

Iowa ........................................

Kansas ....................................

Kentucky .................................

Louisiana .................................

Maine ......................................

Maryland .................................

Massachusetts ........................

Michigan .................................

Minnesota ...............................

Mississippi ................... ...........

Missouri .................... ..............

Montarkp ..................... ............

Nebraska.................................

Nevada ...................................

New Hampshire ......................

New Jersey .............................

290

128

183

1,675

375

223

152

562

718

623

262

137

305

158

199

312

420

807

329

306

504

331

127

170

198

162

142

216

162

114

140

New Mr!xico ......................... New Ycrk .................................

North Carolina .........................

North Dakota...........................

Ohio ........................................

Oklahoma ...............................

Oregon ....................................

Perinsylvania ...........................

Rhode Island...........................

South Carolina .... ...................

South Dakota ..........................

Tennessee ...............................

Texas .......................................

Utah ........................................

Vermont ............ . .....................

Virginia ....................................

Washington .............................

West Virginia ...........................

Wisconsin ................................

Wyoming ...................

Others" ....................................

101

136

531

1,515

168

729

1,397

237

412

1,194

523

297

402

(s)

209

112

145

104

376

319

123

234

443

280

153

121

159

127

136

382

110

161

350

628

392

573

120

228

213

301

148

114

150

195

197

104

372

294

164

104

(5)

444

164

(s)

157

147

151

360

128

145

263

105

1 Volume for new issues is the purchase price of the bond minus the amount used to refund earlier obligations.

2 Consists of qualified mortgage bonds and qualified veterans' mortgage bonds.

3 Includes wharves, mass commuting facilities, parking facilities, or storage facilities direcUy related to any of the preceding.

4 Consists of water furnishing facifities, hydroelectric facilities, mass commuting vehicles, local district heating and cooling facilities, and facilities for local furnishing of electric energy of gas.

5 Less than $500,000.

r Includes District of Columba, Guam, Puerto Rico~ and the Virgin Islands.

NO`rE: Detail may not add to totals because of rounding.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.