Practice Areas

Sales and Use Tax Revenue Bonds

The Mitchell Williams Municipal and Public Finance Group has served as bond counsel and as underwriter’s counsel for a number of successful sales and use tax bond issues.  With a sales and use tax revenue bond offering, the sales and use tax collections are pledged as the security for the bonds, but certain legal requirements must be met to appropriately levy the tax to be used for the debt.

Our attorneys are able to provide bond counsel services on a wide variety of sale and use tax bond issues, including assistance to the municipality with drafting and preparation of an ordinance to levy a sales and use tax, an ordinance to call an election on the tax, preparation of appropriate ballot provisions, and assistance with election requirements.  In addition, our team is also able to assist with issuer with drafting of the bond ordinance or indenture, disclosure and offering documents, including the official statement, review and analysis of applicable law to confirm the issuer’s authority to issue the bonds and its conformity with other legal requirements, affirmation of the issuer’s authorization of the bond offering, evaluation and disclosure of any litigation that may jeopardize the validity of the bond issue, review and interpretation of applicable arbitrage regulations and tax law, determination of the validity and enforceability of the bonds, and providing advice and guidance in structuring bond issues related to tax law, confirming tax-exempt status of transactions and drafting of required tax certificates and filings.

Bond counsel should be consulted early to assist in determining whether a project qualifies and in assuring that the applicable legal requirements will be met.