Tax-Exempt Bonds 2003-2004[617]

Tax-Exempt Bonds, 003-004 by Cynthia Belmonte S tate and local governmental units issued over $872 billion of tax-exempt bonds during Calendar Years 2003 and 2004. In 2003, over 28,000 Governmental bonds were issued, which raised a total of $354.0 billion of proceeds for public projects (such as schools, streets, and utilities). In addition, over 4,100 tax-exempt private activity bonds were issued, for a total $94.0 billion in proceeds used to finance qualified private facilities (such as airports, docks and wharves, and solid waste disposal facilities), as well as to benefit Internal Revenue Code section 501(c)(3) organizations (such as hospitals and private universities). Approximately 26,000 Governmental bonds were issued in 2004, totaling $330.4 billion. In the same year, over 3,600 taxexempt private activity bonds were issued; despite this 12.9-percent decrease in the number of bonds issued over the last year, the total dollar volume of tax-exempt private activity bonds held at $94.0 billion. A bond is an interest-bearing security of indebtedness, i.e., an obligation by the issuer to repay a certain sum of money by a future date, with interest payable at a specified rate. State and local governments issue bonds to raise capital for essential public facilities, services, infrastructure, and general capital improvements. These bonds are classified as either “Governmental” or “private activity,” depending on whether the proceeds are used and secured by public or private entities and resources. For Federal income tax purposes, investors who purchase Governmental bonds and certain types of private activity bonds are allowed to exclude the bond interest from their gross incomes [1]. This tax exemption effectively lowers the borrowing cost of tax-exempt debt issuers, since bondholders are generally willing to accept an interest rate lower than that earned on comparable taxable bonds. More than $684 billion of tax-exempt Governmental bonds were issued during 2003 and 2004. The majority of this amount (over 80 percent) was for long-term bonds (i.e., having maturities of 13 months or more). New money issues--bonds whose proceeds are used to finance new capital projects-accounted for 56.6 percent of the $552.1 billion of long-term tax-exempt Governmental bond proceeds Cynthia Belmonte is an economist with the Special Studies Special Projects Section. This article was prepared under the direction of Barry W. Johnson, Chief. 246 issued during this period, while refunding issues-bonds issued to retire outstanding debt--made up the difference (43.4 percent). More than half (54.7 percent) of the dollar volume of all long-term Governmental bonds issued during this period was used to finance projects related to education, utilities, and transportation. Almost $188 billion of tax-exempt private activity bonds were issued during 2003 and 2004. The majority of this amount, $185.7 billion, was long-term and was split almost equally between new money issues and refunding issues. Qualified Section 501(c)(3) bonds, which include qualified hospital bonds and other qualified bonds issued to benefit entities exempt from income tax under Internal Revenue Code section 501(c)(3), accounted for 43.2 percent of the dollar amount of long-term private activity bonds issued in 2003 and 2004. Private activity bonds issued to provide housing assistance in the form of qualified residential rental projects and qualified mortgages accounted for another 28.7 percent. The annual Budget of the United States Government includes estimates of revenue losses associated with various income tax exclusions, deductions, credits, and special tax rates. The exclusion from gross income of the interest earned on bonds issued by State and local governmental units represents foregone revenue to the U.S. Treasury. For Fiscal Year 2007, the U.S. Treasury Department estimate of this revenue loss was $36.8 billion--$29.6 billion of which was for tax-exempt Governmental bonds and another $7.2 billion of which was for tax-exempt private activity bonds [2]. This article includes data on both tax-exempt Governmental and private activity bonds issued during 2003 and 2004, with particular emphasis on those bonds issued in 2004. Background Since the inception of the modern-day Federal income tax in 1913, interest received by holders of debt obligations (i.e., bonds) of States and their political subdivisions has been excludable from gross income for Federal income tax purposes [3]. This exclusion, set forth in section 103 of the Internal Revenue Code of 1986, only applies to Governmental bonds and “qualified bonds” (as defined by Internal Revenue Code section 141(e)). The exclu- Tax-Exempt Bonds, 2003-2004 sion is not allowed for arbitrage bonds and bonds not in registered form [4,5]. Both Governmental and private activity bonds are obligations issued by or on behalf of State and local governmental units; it is the use of proceeds that differentiates the two. Governmental bond proceeds finance essential government operations, facilities, and services that are for general public use. Private activity bond proceeds are used by a private entity. Internal Revenue Code section 141 defines a bond as a private activity bond if both of the following criteria are met: 1) more than 10 percent of the bond proceeds are used for a private business purpose; and 2) more than 10 percent of the bond debt service is derived from private business use and is secured by privately used property. A private activity bond’s tax-exempt status then depends on whether it is deemed a qualified bond. Qualified bonds, termed tax-exempt private activity bonds in this article, include “exempt facility bonds,” qualified mortgage bonds, qualified veterans’ mortgage bonds, qualified small issue bonds, qualified student loan bonds, qualified redevelopment bonds, and qualified section 501(c)(3) bonds (all of which are defined in the “Explanation of Terms” section at the end of this article). Several types of exempt facilities include airports; docks and wharves; sewage facilities; solid waste disposal facilities; qualified residential rental projects; and facilities for the local furnishing of electricity or gas. Qualified section 501(c)(3) bonds are issued by State and local governments to finance the activities of charitable and similar organizations that are tax-exempt under Code section 501(c)(3). The primary beneficiaries of these bonds are hospitals, universities, and organizations that provide low-income housing or assisted living facilities. Bonds can be characterized as either new money issues or refunding issues. A new money issue refers to a bond issued to finance a new capital project. A refunding issue refers to any bond used to pay debt service on and retire an outstanding issue. Generally, this is done to reduce interest payments, extend the maturity of the debt, or ease certain restrictions in the original bond contract. Refunding issues are classified as either “current” or “advanced,” depending on the time between the issuance of the new bonds and the maturity date (or specified call date) of the outstanding issue [6]. Current refunding occurs when the new bond is issued within 90 days of the final payment of principal or interest (redemption) on the prior issue. Advance refunding occurs when the new bond is issued more than 90 days before the final payment of principal or interest (redemption) on the prior issue. Generally, for advance refundings, the proceeds of the new (“refunding”) issue are invested in Government securities, which are placed in escrow, and the interest and principal repayments on these securities are then used to repay the refunded bonds over time. Advanced refundings result in two sets of bond proceeds outstanding for one particular project, for an extended period of time. Not only is this an inefficient allocation of bond proceeds, but the increase in the total amount of outstanding tax-exempt debt represents additional foregone revenue to the U.S. Treasury. To limit this, there are restrictions on advance refundings of both Governmental and tax-exempt private activity bonds. Generally, tax-exempt Governmental bonds are limited to one advance refunding [7]. Advance refundings are prohibited with respect to most types of tax-exempt private activity bonds. Two exceptions to this rule are qualified section 501(c)(3) bonds and private activity bonds designated as “liberty advance refunding bonds,” both of which are allowed one advance refunding [8]. Tax-exempt private activity bonds are subject to State volume limitations (i.e., volume caps). Most types of tax-exempt private activity bonds are subject to the unified volume cap, which limits the aggregate dollar amount of bonds that each State can issue annually. The unified State volume cap is adjusted annually for population growth, and, effective January 1, 2003, the volume cap was indexed for inflation [9]. Other tax-exempt private activity bonds are subject to separate volume limitations based on the types of projects being financed. Refunding bonds are not subject to volume cap limitations, as long as there is no increase in the principal amount of the outstanding bond. States are allowed to carry over any unused portion of the volume cap of a particular year for up to 3 years. Tax-Exempt Governmental Bonds Total Governmental Bond Volume Figure A tracks the year-to-year changes in the total dollar volume of tax-exempt Governmental bond 247 Tax-Exempt Bonds, 2003-2004 issuances over the last 10 years. The total dollar volume of bonds issued annually more than doubled between 1995 and 2004, with the largest increases occurring between 2000 and 2002. Over $1 trillion of tax-exempt Governmental bonds were issued from 2002 to 2004, compared to the $1.3 trillion combined total for the 7 preceding years. For 2003, a total of $354.0 billion of Governmental bonds was issued, which marked the highest observed volume since SOI began compiling tax-exempt bond data in 1995. Issuance volume then decreased 6.7 percent, to $330.4 billion, in 2004. This article will primarily focus on tax-exempt bond issuances for 2003 and 2004. The annual amount of new money issues of Governmental bonds was fairly constant between 2002 and 2004. For 2003, a total of $216.5 billion of new money Governmental bonds was issued, an increase of 5.9 percent over the 2002 level. The dollar volume of new money issuances then decreased 3.8 percent, to $208.2 billion, in 2004. Refunding issues of Governmental bonds increased slightly in 2003 (from $135.7 billion to $137.5 billion) and decreased 11.1 percent in 2004 (to $122.2 billion). Refundings tend to be more common when interest rates are falling, as borrowers seek to reduce interest payments over the life of the bond. Refunding issues remained at historically high levels for 2003 and 2004 (both in nominal dollars and as a percentage of all Governmental bond issues), and average interest rates remained at historically low levels. Average annual State and local bond interest rates fell slightly during this time, from 5.04 percent in 2002 to 4.75 percent in 2003 and 4.68 percent in 2004 (Figure A) [10]. Uses of Governmental Bond Proceeds Bonds can be classified as either short-term or long-term, depending on the length of time between issuance and maturity. Bonds having maturities of less than 13 months are typically classified as shortterm, while those having maturities of 13 months or more are classified as long-term. The dollar volume of long-term tax-exempt Governmental bond issues increased 2.5 percent between 2002 and 2003, from $275.7 billion to $282.6 billion, then decreased 4.6 percent, to $269.5 billion, for 2004. The dollar volume of short-term tax-exempt Governmental bond issues increased 10.9 percent between 2002 Figure A Volume of Governmental Bonds Issued, by Type and Issue Year, 1995-2004 Billions of dollars 400 350 340.1 354.0 330.4 Average Annual Interest Rate, 1995-2004 [1] Interest Rate 8.00 7.50 7.00 264.3 227.0 216.5 183.7 179.5 136.8 133.2 90.2 50.5 34.5 169.3 7.59 7.37 7.62 7.27 7.05 7.08 6.49 6.53 300 250 200 150 100 50 171.7 6.50 208.2 204.4 176.8 137.5 135.7 87.4 6.00 5.50 5.95 5.76 5.52 5.09 5.43 5.71 5.15 5.04 5.66 5.63 140.0 119.3 103.6 52.4 36.4 117.2 62.3 134.9 122.2 5.00 4.50 4.75 4.68 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Issue year All issues New Money issues Refunding issues 4.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year Taxable Interest Rate on Corporate Bonds Tax-Exempt Interest Rate on State and Local Bonds 248 [1] Data for interest rates obtained from Federal Reserve Board, "Federal Statistical Release H.15: Selected Interest Rates, Historical Data." Tax-Exempt Bonds, 2003-2004 and 2003, from $64.4 billion to $71.4 billion, then decreased 14.7 percent, to $60.9 billion, for 2004. Of the $354.0 billion of tax-exempt Governmental bonds issued for 2003, about $282.6 billion (79.8 percent) were long-term issues, while the remaining $71.4 billion (20.2 percent) were short-term issues (Figure B). For 2004, short-term issues totaled $60.9 billion, which comprised an even smaller share of the total dollar volume (18.4 percent). Most short-term Governmental bonds are issued as revenue anticipation notes (RANs), tax anticipation notes (TANs), or bond anticipation notes (BANs). RANs and TANs generally mature within 1 year of issuance, at which time the proceeds are paid from intergovernmental revenue or specific tax receipts. BANs are often used to cover certain upfront costs associated with a long-term project for which a future bond will be issued. A BAN is later paid off from the proceeds of the sale of the future bond or of a renewal BAN. Combined, RANs, TANs, and BANs, comprised 89.5 percent of the $71.4 billion of short-term tax-exempt Governmental bond proceeds for 2003, and 89.6 percent of the $60.9 billion issued in 2004. Figure C presents the various purposes for which these short-term bonds were issued in 2003 and 2004. Figure B Tax-Exempt Governmental Bonds, by Term of Issue, 2003-2004 [Money amounts in billions of dollars] Percent of total dollar volume issued 100 90 80 70 60 50 40 30 20 10 0 2003 Issue year 2004 $71.4 $60.9 $282.6 $269.5 Most of this article focuses on long-term issues, since they comprise the majority of the total dollar volume of tax-exempt bonds issued in 2003 and 2004. Table 2 shows the annual distribution of long-term Governmental bond proceeds, by purpose of bond issue. Together, bonds used for education, transportation, and utilities annually account for more than half of total long-term Governmental issuances. Education bonds alone comprised 29.1 percent of the total $282.6 billion in long-term bonds issued for 2003 and 29.9 percent of the $269.5 billion for 2004. Bonds issued for transportation projects accounted for 12.0 percent and 11.9 percent of the annual dollar volume of long-term Governmental bond issues for 2003 and 2004, respectively. Utility bonds accounted for 15.8 percent of long-term Governmental issues in 2003, before dropping to only 10.7 percent of the total in 2004. Also for 2004, there were $18.7 billion in long-term Governmental bonds issued for environmental purposes accounting for 7.0 percent of the total. Environmental bonds include those issued for drainage, sanitation, and wastewater projects. Bonds issued for public safety (e.g., fire and police services) and health and hospital comprised, on average, 2.5 percent and 2.0 percent of annual long-term Governmental bond issues, respectively. Annually, a large share of bond issuances is reported as being used for “other purposes” (i.e., specific purpose(s) did not apply or were not separately allocated by the issuer). For 2003 and 2004, “other bond purposes” accounted for 30.0 percent and 35.4 percent of the dollar volume of long-term Governmental bonds, respectively. For 2003, total new money proceeds exceeded refunding proceeds, accounting for 54.8 percent of the total $282.6 billion of total long-term Governmental bond proceeds. Figure D illustrates the split between the new money and refunding proceeds of long-term Governmental bonds, by selected purpose. Refunding proceeds exceeded new money proceeds for three bond purposes--utilities, environment, and health and hospital--accounting for 61.6 percent, 56.5 percent, and 54.0 percent of the total amount of longterm bonds issued for each purpose, respectively. For 2004, total new money proceeds exceeded refunding proceeds, accounting for 58.5 percent of the total $269.5 billion of long-term Governmental bond proceeds. Refunding proceeds issued for utility 249 Short-term Long-term Tax-Exempt Bonds, 2003-2004 Figure C Distribution of Proceeds from Short-Term Revenue Anticipation Notes, Tax Anticipation Notes, and Bond Anticipation Notes, by Purpose of Bond, 2003-2004 2003 Education 26.6% Other bond purposes (not allocated) 66.4% Health and Hospital 0.2% $63.9 Billion Transportation 2.6% Safety 1.2% Environment 1.4% Utilities 1.6% 2004 Education 29.4% Other bond purposes (not allocated) 64.3% Health and Hospital 0.2% Transportation 1.5% Safety 1.1% Environment 1.9% Utilities 1.6% $54.6 Billion 250 Tax-Exempt Bonds, 2003-2004 Figure D Long-Term Governmental Bonds, by Selected Bond Purpose and Type of Issue, 2003-2004 Billions of dollars 90 80 70 60 50 40 30 20 10 0 Other [1] Education Utilities Transportation $17.1 $17.7 $7.8 $50.2 $51.3 $27.5 $16.3 $34.7 $31.1 2003 $10.1 $3.1 $4.8 $2.9 $2.5 Environment Public safety Health and hospital Bond purpose Billions of dollars 100 90 80 70 60 50 40 30 20 10 0 $16.2 $54.0 $49.8 $30.8 $41.3 2004 $11.8 $6.9 $20.1 $2.1 $3.7 $1.7 $3.8 $12.5 $11.8 Other [1] Education Utilities Transportation Bond purpose Environment Public safety Health and hospital New money issues Refunding issues [1] "Other bonds" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return. 251 Tax-Exempt Bonds, 2003-2004 bonds accounted for 56.6 percent of the total amount of long-term bonds issued for that purpose. For all other bond purposes, the majority of the long-term bond proceeds were new money. Table 3 presents uses of tax-exempt long-term Governmental bond proceeds. A portion of bond proceeds is often used to pay for associated issuance costs (e.g., fees paid to trustees and bond counsel), fund reserve accounts, and refund prior bond issues. For 2003, of the $282.6 billion of long-term tax-exempt Governmental bonds issued, issuers used $2.6 billion (0.9 percent) of the bond proceeds for bond issuance costs, $1.2 billion (0.4 percent) for credit enhancement, and $3.5 billion (1.2 percent) for reserve fund allocations. The remaining $275.3 billion (97.4 percent) represented lendable proceeds, $125.4 billion of which were used to refund or retire prior bond issues, leaving $149.9 billion to be used for new project costs. For 2004, of the $269.5 billion of long-term tax-exempt Governmental bonds issued, issuers used $2.4 billion (0.9 percent) of the bond proceeds for bond issuance costs, $1.0 billion (0.4 percent) for credit enhancement, and $2.6 billion (1.0 percent) for reserve fund allocations. The remaining $263.5 billion (97.8 percent) represented lendable proceeds, $110.0 billion of which were used to refund or retire prior bond issues, leaving $153.8 billion to be used for new project costs. ments, and other unspecified expenditures. Of the issues exceeding $75 million, the top specified uses of the proceeds were for education ($22.7 billion), transportation ($16.7 billion), and the environment ($8.2 billion). In addition, bonds issued for “other purposes” accounted for $36.1 billion of the total new money long-term Governmental bond issues in excess of $75 million for 2004. For these largest issues, the average bond issue for transportation projects was $203.8 million, while those issued for educational purposes averaged $156.7 million. The distribution of bonds by size of issue followed a similar pattern in 2003. New Money Issues of Long-Term Governmental Bonds, Classified by State New Money Issues of Long-Term Governmental Bonds, Classified by Size of Issue 252 For 2004, a total of 14,419 new money long-term tax-exempt Governmental bonds was issued, with proceeds totaling $157.7 billion (Table 4). Almost half of the total number of new money long-term Governmental bond issues was for small bonds with an entire issue price of less than $1 million [11]. However, in dollar terms, these bonds comprised only 1.5 percent of the total bond proceeds. Bonds with an entire issue price of less than $5 million accounted for almost three-quarters of the total number of bond issues, but only 6.7 percent of total bond proceeds. There were 437 bonds (3.0 percent) with an entire issue price in excess of $75 million. The combined proceeds of these bonds comprised 59.1 percent of the total money issued. Bonds with an issue price less than $1 million were generally issued by smaller towns for purposes such as school buses, fire trucks, municipal improve- Table 5 shows how the volume of new money long-term Governmental bond issues varied across the States during 2003 and 2004. Total new money long-term bond volume increased $6.7 billion (4.5 percent) from 2002 to 2003, and grew by another $3.0 billion (1.9 percent) from 2003 to 2004. Despite this seemingly modest increase in overall bond issuance, for several States, there were more pronounced changes in the dollar amount of bonds issued. These changes in year-to-year issuance reflect the timing of particular infrastructure projects (and the associated financing of such projects) within each State. New York issued $8.0 billion more new money long-term bonds in 2003 than in 2002--the largest increase (in dollar value terms) of any State--before cutting total issuance 31.9 percent to $12.1 billion in 2004. In 2003, California’s issuances increased $5.0 billion, a 21.1-percent increase over the previous year, and grew by another $4.9 billion in 2004. In 2003, bond issuances in Tennessee, Maryland, and Pennsylvania all increased by over $1.0 billion each, representing 88.6 percent, 58.1 percent, and 26.7-percent growth over 2002 levels, respectively; however, each of the three States experienced declines in 2004 that largely negated the 2003 growth. Several States, including Illinois, Massachusetts, Texas, Georgia, and Wisconsin, decreased new money long-term bond issuances by over $1.0 billion from 2002 to 2003. During 2003, Texas’s issuances decreased $3.1 billion (25.0 percent) from the previous year, and then, in 2004, partially rebounded with a $2.0-billion increase. New money long-term issuances in Illinois declined $2.3 billion (26.4 percent) Tax-Exempt Bonds, 2003-2004 in 2003, before slightly rebounding in 2004. Issuances in Massachusetts decreased $1.5 billion (34.8 percent) from 2002 to 2003, only to increase $0.5 billion in 2004. Figure E presents a State-by-State ranking of new money long-term bond issuances and per capita issuance, for 2004. About $78.5 billion (nearly 50.0 percent) of the $157.7 billion of new money longterm bonds issued for 2004 were issued in the following 6 States: California (21.2 percent), New York (7.7 percent), Texas (7.2 percent), New Jersey (5.2 percent), Illinois (4.3 percent), and Florida (4.3 percent). According to 2004 Census estimates, together, these 6 States accounted for 40.0 percent of the total U.S. population [12]. On a per capita basis, however, New Mexico ($1,038), Alaska ($990), New Jersey ($946), California ($944), Colorado ($818), Nevada ($700), and Connecticut ($662) accounted for the largest amounts of new long-term tax-exempt Governmental bond issues. Wyoming issued the least amount of bonds, with only $71 million of new money long-term taxexempt Governmental bonds. On a per capita basis, this amounted to $142 per resident. Idaho issued the least new money long-term bonds per capita ($129). Unlike private activity bonds, Governmental bonds are generally not subject to the volume cap; however, if more than $15 million of the proceeds are used in private use or disproportionate use, then the amount in excess of $15 million is subject to the volume cap, and issuers are required to report the amount of the State volume cap allocated to the Governmental issue [13]. For 2004, issuers reported allocating a combined $153.5 million of State volume cap to the total $330.4 billion of total Governmental bond issues. Figure F presents the amount of bonds issued by selected purpose, for the top 15 States in terms of total dollar volume of new long-term Governmental bonds issued for 2004. Combined, these 15 States accounted for 72.5 percent of the total new money long-term bond issues for the year. Overall, for 2004, about 31.6 percent of the amount of new money long-term Governmental bonds were issued for educational purposes. However, there was some variance in the purposes for which States issued bonds. For example, of the total amount of new money long-term bonds issued in Michigan, 58.4 percent were issued for education, compared to 39.4 percent in New Jersey and 12.1 percent in New York, for the same purpose. Transportation projects accounted for 12.8 percent of States’ total amount of new money long-term bond issues overall. In New York, however, 29.4 percent of the total new money long-term bonds issued were for transportation, followed by Arizona, which allocated 26.3 percent for the same purpose. Transportation bonds accounted for only 4.2 percent of Virginia’s total amount of new money long-term bond issues. Georgia devoted a larger portion of its total amount of new money longterm bonds (35.4 percent) to environmental projects, considerably more than the national average, 7.5 percent. Michigan and Ohio also spent large portions of their totals on environmental projects--17.1 percent and 17.0 percent, respectively. Tax-Exempt Private Activity Bonds Total Private Activity Bond Volume Figure G illustrates the dollar volume of tax-exempt private activity bond issuances during the 10-year period extending from 1995 through 2004. During the 10-year period, combined, a total of $789.3 billion of tax-exempt private activity bonds was issued. Generally, the overall pattern in annual issuances follows that of Governmental bonds. For 1995, about $52.4 billion of tax-exempt private activity bonds were issued. Issuances climbed to $91.6 billion in 1998, before dropping off and then rising to $93.0 billion in 2002. Since then, there has been minimal change in the total dollar volume of tax-exempt private activity bonds issued annually, with $93.9 billion issued in 2003 and $94.0 billion issued in 2004. In all but one of the 10 years depicted, the dollar volume of new money tax-exempt private activity bonds issued exceeded refunding issues. In 2003, refunding issues of tax-exempt private activity bonds totaled $47.9 billion, an increase of 13.1 percent over the 2002 level, while new money issues totaled $46.0 billion, a decrease of 9.1 percent over the 2002 level. The decline in average interest rates between 2000 and 2004 (from 5.71 percent to 4.68 percent) contributed to the increase in the level of refunding bonds over the same time period (from $28.3 billion for 2000 to $45.9 billion for 2004). (Average annual interest rates for the period covered are presented in Figure A). 253 Tax-Exempt Bonds, 2003-2004 Figure E [Money amounts are in millions of dollars, except where noted otherwise] New Money Long-Term Governmental Bonds, by State of Issue, 2004 State of issue Amount of bonds issued Total (1) Rank (2) n.a. 25 39 15 32 1 11 19 42 d 6 9 38 47 5 18 34 27 30 26 43 21 16 10 17 37 24 48 41 28 44 4 22 2 14 45 7 31 33 8 40 20 46 29 3 35 d 12 13 36 23 50 State population (in millions) [2] (3) 290.8 4.5 0.6 5.6 2.7 35.5 4.6 3.5 0.8 0.6 17.0 8.7 1.3 1.4 12.7 6.2 2.9 2.7 4.1 4.5 1.3 5.5 6.4 10.1 5.1 2.9 5.7 0.9 1.7 2.2 1.3 8.6 1.9 19.2 8.4 0.6 11.4 3.5 3.6 12.4 1.1 4.1 0.8 5.8 22.1 2.4 0.6 7.4 6.1 1.8 5.5 0.5 Per capita amount of bonds (whole dollars) Total (4) 542 380 990 638 386 944 818 662 494 d 396 479 492 129 533 484 334 588 308 375 233 379 532 401 616 228 301 146 274 700 217 946 1,038 629 433 365 431 338 278 349 427 534 226 255 512 351 d 497 599 411 328 142 Rank (5) n.a. 29 2 8 28 4 5 7 18 d 27 21 19 50 14 20 36 12 38 31 43 30 15 26 10 44 39 48 41 6 46 3 1 9 22 32 23 35 40 34 24 13 45 42 16 33 d 17 11 25 37 49 Total [1].............................................................. Alabama.............................................................. Alaska................................................................. Arizona................................................................ Arkansas............................................................. California............................................................. Colorado.............................................................. Connecticut......................................................... Delaware............................................................. District of Columbia............................................. Florida................................................................. Georgia............................................................... Hawaii................................................................. Idaho................................................................... Illinois.................................................................. Indiana................................................................ Iowa..................................................................... Kansas................................................................ Kentucky............................................................. Louisiana............................................................. Maine.................................................................. Maryland............................................................. Massachusetts.................................................... Michigan.............................................................. Minnesota............................................................ Mississippi........................................................... Missouri............................................................... Montana.............................................................. Nebraska............................................................. Nevada................................................................ New Hampshire................................................... New Jersey......................................................... New Mexico......................................................... New York............................................................. North Carolina..................................................... North Dakota....................................................... Ohio..................................................................... Oklahoma............................................................ Oregon................................................................ Pennsylvania....................................................... Rhode Island....................................................... South Carolina.................................................... South Dakota...................................................... Tennessee.......................................................... Texas.................................................................. Utah..................................................................... Vermont............................................................... Virginia................................................................ Washington......................................................... West Virginia....................................................... Wisconsin............................................................ Wyoming............................................................. 157,717 1,708 594 3,572 1,043 33,501 3,765 2,317 395 d 6,734 4,163 639 180 6,773 3,001 970 1,587 1,262 1,689 303 2,087 3,403 4,050 3,142 661 1,714 131 465 1,540 282 8,137 1,973 12,076 3,636 219 4,916 1,184 999 4,332 470 2,190 181 1,480 11,318 843 d 3,677 3,654 739 1,804 71 d - Data deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals. [1] Includes amounts for Puerto Rico and U.S. possessions. [2] Resident population estimates released by the Bureau of the Census on December 18, 2003, in Press Release CB03-197 and published in Internal Revenue Bulletin No. 2004-11 (Notice 2004-21). These are the population figures used to calculate the private activity volume cap for Calendar Year 2004. 254 Tax-Exempt Bonds, 2003-2004 Figure F New Money Long-Term Governmental Bonds by Selected Purpose of Bond, for Top 15 States, Ranked by Issuance Volume, 2004 Selected purpose of bond State Total amount of bonds issued (1) All States.................... California......................... New York......................... Texas............................... New Jersey...................... Illinois............................... Florida.............................. Ohio................................. Pennsylvania................... Georgia............................ Michigan.......................... Colorado.......................... Virginia............................. Washington...................... North Carolina................. Arizona............................ 157,717 33,501 12,076 11,318 8,137 6,773 6,734 4,916 4,332 4,163 4,050 3,765 3,677 3,654 3,636 3,572 Education Amount (2) 49,837 9,623 1,457 6,303 3,207 1,598 1,957 1,915 1,977 980 2,364 1,296 1,471 720 1,525 1,054 Percent of total amount issued (3) 31.6 28.7 12.1 55.7 39.4 23.6 29.1 39.0 45.6 23.5 58.4 34.4 40.0 19.7 41.9 29.5 Transportation Amount (4) 20,148 2,036 3,554 586 1,300 801 894 501 427 589 241 608 155 596 352 939 Percent of total amount issued (5) 12.8 6.1 29.4 5.2 16.0 11.8 13.3 10.2 9.9 14.1 6.0 16.1 4.2 16.3 9.7 26.3 Utilities Amount (6) 12,467 2,398 365 1,758 24 173 878 136 240 236 145 622 247 515 393 301 Percent of total amount issued (7) 7.9 7.2 3.0 15.5 0.3 2.6 13.0 2.8 5.5 5.7 3.6 16.5 6.7 14.1 10.8 8.4 Environment Amount (8) 11,798 2,182 277 426 230 232 108 836 284 1,472 691 17 239 204 204 286 Percent of total amount issued (9) 7.5 6.5 2.3 3.8 2.8 3.4 1.6 17.0 6.6 35.4 17.1 0.5 6.5 5.6 5.6 8.0 Public safety Amount (10) 3,715 672 149 121 80 174 127 103 72 119 61 160 107 31 328 126 Percent of total amount issued (11) 2.4 2.0 1.2 1.1 1.0 2.6 1.9 2.1 1.7 2.9 1.5 4.2 2.9 0.8 9.0 3.5 [Money amounts are in millions of dollars] Uses of Long-Term Private Activity Bond Proceeds From 2002 to 2003, the dollar volume of long-term tax-exempt private activity bonds increased 1.7 percent, from $91.1 billion to $92.6 billion, and increased only slightly (0.5 percent) in 2004, to $93.1 billion. Similar to previous years, the vast majority of tax-exempt private activity bond issues were longterm (Figure H). Short-term issues are rare, since private activity bonds are used primarily to finance capital improvement projects, which are generally long-term in nature. Also, private-activity bond issuers typically do not issue bonds in the form of RANs, TANs, or BANs. Of the about $93.9 billion of taxexempt private activity bonds issued for 2003, $92.6 billion (98.6 percent) were long-term issues. For 2004, about $93.1 billion (99.0 percent) of the $94.0 billion total tax-exempt private activity bonds issued were long-term. Table 7 shows the annual distribution of longterm private activity bond proceeds, by purpose of bond issue, for 2003 and 2004. For 2003 and 2004, on average, qualified section 501(c)(3) bonds, including qualified hospital bonds, accounted for 43.2 percent of the dollar volume of all long-term private activity bond issues. These bonds help finance construction of facilities and other property used by charitable, educational, religious, and similar organizations recognized as tax-exempt under section 501(c)(3) of the Internal Revenue Code. Combined, bonds issued for qualified mortgages and qualified residential rental projects accounted for 28.6 percent of the total $92.6 billion in long-term bonds issued for 2003 and 28.8 percent of the $93.1 billion for 2004. Qualified residential rental bonds (also referred to as multifamily housing bonds) help developers finance construction, acquisition, and/or rehabilitation of affordable housing projects, and qualified mortgage bond programs assist prospective first-time homebuyers with low-to-moderate incomes by providing below-market interest rate loans and down payment assistance. Combined, bonds used for these four purposes accounted for almost three-quarters of the total long-term tax-exempt private activity bond issuances in 2003 and 2004. For 2003, other important types of tax-exempt private activity bonds issued were airport bonds (9.1 percent) and student loan bonds (4.7 percent). Uses of 255 Tax-Exempt Bonds, 2003-2004 Figure G Volume of Tax-Exempt Private Activity Bonds Issued, by Type and Issue Year, 1995-2004 Billions of dollars 100 90 80 70 60 50 40 30 20 10 0 1995 28.3 24.1 52.4 37.7 31.4 28.7 32.2 45.2 32.9 33.6 28.3 60.1 46.5 47.9 41.7 42.3 49.9 50.6 47.9 46.0 48.1 45.9 69.9 91.6 80.9 83.5 93.0 93.9 94.0 70.0 1996 1997 1998 1999 2000 Issue year 2001 2002 2003 2004 All issues New Money issues Refunding issues 256 long-term bond proceeds in 2004 included certain Tax Reform Act transition property (8.1 percent), airports (5.4 percent), and student loan programs (5.1 percent). For 2003, total refunding proceeds slightly exceeded new money proceeds, accounting for 50.7 percent of the total $92.6 billion of long-term private activity bond proceeds. Figure I illustrates the split between the new money and refunding proceeds of long-term private activity bonds, by selected purpose. Of the selected bond purposes shown in Figure I, refunding proceeds exceeded new money proceeds for only one bond purpose--mortgage bonds--which accounted for 79.7 percent of the total $16.8 billion of long-term bonds issued for that purpose in 2003. For 2004, total new money proceeds exceeded refunding proceeds, accounting for 51.4 percent of the total $93.1 billion of long-term private activity bond proceeds. Refunding proceeds exceeded new money proceeds for three bond purposes--mortgages, airports, and solid waste disposal facilities--accounting for 72.6 percent, 50.5 percent, and 59.2 percent of the total amount of long-term bonds issued for each purpose, respectively. For all other private activity bond purposes, the majority of the long-term bond proceeds were new money. Figure H Tax-Exempt Private Activity Bonds, by Term of Issue, 2003-2004 [Money amounts are in billions of dollars] Percent of total dollar volume issued 100 80 60 $92.6 40 20 0 2003 Issue year Short-term Long-term $1.3 $93.1 $0.9 2004 Tax-Exempt Bonds, 2003-2004 Figure I Long-Term Tax-Exempt Private Activity Bonds, by Selected Bond Purpose and Type of Issue, 2003-2004 2003 Billions of dollars 25 $7.7 20 $8.7 $13.4 15 $3.5 10 $14.1 $2.9 5 $9.9 $6.2 $3.4 $5.6 $1.5 $1.2 $2.9 $1.4 0 Other section 501(c)(3) Section 501(c)(3) hospital Mortgage Residential rental Bond purpose Airport Student loan Solid waste disposal Billions of dollars 25 $7.0 2004 20 $7.2 $13.4 15 10 $15.7 $2.8 $2.6 $0.8 $2.0 $5.1 $5.6 $2.5 $4.0 $1.4 5 $11.1 0 Other section 501(c)(3) Section 501(c)(3) hospital Mortgage Residential rental Bond purpose New money issues Airport Student loan Solid waste disposal Refunding issues 257 Tax-Exempt Bonds, 2003-2004 For 2003, of the $92.6 billion of long-term taxexempt private activity bonds issued, issuers used $0.6 billion (0.7 percent) of the bond proceeds for bond issuance costs, $0.6 billion (0.6 percent) for credit enhancement, and $1.3 billion (1.4 percent) for reserve fund allocations (Table 8). The remaining $90.2 billion (97.3 percent) represented lendable proceeds, $46.1 billion of which were used to refund or retire prior bond issues, leaving $44.0 billion to be used for new project costs. Of the $93.1 billion of long-term tax-exempt private activity bonds issued in 2004, issuers used nearly $0.6 billion (0.6 percent) of the proceeds for bond issuance costs, almost $0.6 billion (0.6 percent) for credit enhancement, and $1.2 billion (1.3 percent) for reserve fund allocations. The remaining $90.7 billion (97.5 percent) of lendable proceeds were used to refund or retire prior bond issues ($44.4 billion) and to finance new projects ($46.3 billion). 2004. The increase was mainly limited to bond issues worth $100 million or more. In 2004, for bonds in this size category, there was an overall increase of $2.9 billion over the 2003 amount ($17.3 billion). New Money Issues of Long-Term Private Activity Bonds, Classified by State New Money Issues of Long-Term Private Activity Bonds, Classified by Size of Issue 258 For 2004, a total of 2,544 new money long-term tax-exempt private activity bonds was issued, with proceeds totaling $47.9 billion (Table 9). Bonds with an issue price of less than $10 million, including 399 qualified small issue bonds (or industrial development bonds), accounted for 57.4 percent of the total number of bond issues, but only 10.9 percent of total bond proceeds. Over 60 percent of the total proceeds were attributable to the 12 percent of bonds with an issue price in excess of $50 million. Approximately $8.9 billion in proceeds were raised by 165 bond issues priced between $50 million and $100 million, while another $20.1 billion were raised by 146 bond issues, each of which exceeded $100 million. Of the issues exceeding $100 million, the top uses of the proceeds were for qualified section 501(c)(3) bonds, including those issued for qualified hospitals, ($10.9 billion), student loan bonds ($3.0 billion), and mortgage bonds ($2.3 billion). There was a 6.5-percent decrease in the number of new money long-term tax-exempt private activity bonds issued in 2004, as compared to 2003. However, the total dollar amount of new money longterm tax-exempt private activity bonds increased 4.9 percent, from $45.6 billion to $47.9 billion. The average new money long-term bond issue in 2003 was $16.8 million, compared to $18.8 million in Unlike Governmental bonds, most types of new money private activity bond issues were subject to State volume cap limitations determined by population [9]. States had leeway in allocating the cap among the various qualified purposes subject to the cap. Private activity bonds not subject to the unified State volume cap included all new money issues for airports, docks and wharves, Governmentally-owned solid waste facilities, hydroelectric generating facilities, and Governmentally-owned high-speed intercity rail facilities [14]. Refunding issues are not figured into the total for the cap, as long as there is no increase in the principal amount of the outstanding bond. In addition, carryforward rules allow States to apply any unused amount of the cap to certain types of new money issues up to 3 years into the future. For this reason, it is legitimately possible for a State to issue new money private activity bonds in an amount that exceeds its cap for a given year. Qualified public educational facility bonds were subject to their own special volume limitations, as were liberty bonds, empowerment zone facility bonds, qualified veterans’ mortgage bonds, and qualified section 501(c)(3) bonds [15]. Figure J shows the amount of total new money long-term issuance, new issues subject to the volume cap, and volume cap allocations, by State, for 2003 and 2004. Overall bond capacity (the total amount of bonds allowed to be issued under the unified State volume cap) grew by 6.5 percent, from $24.2 billion to $25.8 billion from 2003 to 2004. Despite across the board increases in bond capacity from 2003 to 2004, some States scaled back issuances of new money long-term private activity bonds in 2004. Examining only the types of bond purposes subject to the volume cap, Florida issued $133 billion less of new money long-term bonds in 2004 than in 2003 [16]. New money issues subject to the volume cap decreased $130 million in New Jersey, and $66 million in California, from 2003 to 2004. Texas increased issuance volume by $137 million. Tax-Exempt Bonds, 2003-2004 Figure J New Money Long-Term Tax-Exempt Private Activity Bonds and Volume Cap, by State of Issue, 2003 and 2004 2003 State of issue Amount of bonds issued Total (1) All States [1]............................................................... Alabama.......................................................................... Alaska.............................................................................. Arizona............................................................................ Arkansas.......................................................................... California......................................................................... Colorado.......................................................................... Connecticut...................................................................... Delaware......................................................................... District of Columbia......................................................... Florida.............................................................................. Georgia............................................................................ Hawaii.............................................................................. Idaho................................................................................ Illinois............................................................................... Indiana............................................................................. Iowa................................................................................. Kansas............................................................................. Kentucky.......................................................................... Louisiana......................................................................... Maine............................................................................... Maryland.......................................................................... Massachusetts................................................................. Michigan.......................................................................... Minnesota........................................................................ Mississippi....................................................................... Missouri........................................................................... Montana........................................................................... Nebraska......................................................................... Nevada............................................................................ New Hampshire............................................................... New Jersey...................................................................... New Mexico..................................................................... New York......................................................................... North Carolina................................................................. North Dakota................................................................... Ohio................................................................................. Oklahoma........................................................................ Oregon............................................................................. Pennsylvania................................................................... Rhode Island................................................................... South Carolina................................................................. South Dakota................................................................... Tennessee....................................................................... Texas............................................................................... Utah................................................................................. Vermont........................................................................... Virginia............................................................................. Washington...................................................................... West Virginia................................................................... Wisconsin........................................................................ Wyoming.......................................................................... 45,633 210 99 578 137 4,252 775 746 151 560 2,512 1,508 d 118 2,103 1,298 476 169 732 473 298 838 2,116 1,050 1,004 134 955 268 134 411 391 1,438 163 3,796 974 126 1,395 274 643 1,907 346 541 127 932 3,623 513 286 1,518 1,013 200 1,008 d Subject to volume cap [2] (2) 14,753 94 0 318 73 1,912 224 238 55 113 626 412 d 88 480 300 143 110 161 271 168 157 481 379 340 53 242 249 30 73 232 379 148 1,143 328 100 201 183 200 583 127 166 56 634 1,094 197 215 203 314 60 250 d Total volume cap [3] (3) 24,198.4 336.5 228.6 409.2 228.6 2,633.7 338.0 259.5 228.6 228.6 1,253.5 642.0 228.6 228.6 945.0 461.9 228.6 228.6 307.0 336.2 228.6 409.4 482.1 753.8 376.5 228.6 425.4 228.6 228.6 228.6 228.6 644.3 228.6 1,436.8 624.0 228.6 856.6 262.0 264.1 925.1 228.6 308.0 228.6 434.8 1,633.5 228.6 228.6 547.0 455.2 228.6 408.1 228.6 2004 Amount of bonds issued Total (4) 47,877 150 165 744 257 5,859 1,214 287 189 360 1,626 2,008 d 131 2,023 1,340 303 300 487 613 141 1,150 1,671 1,114 954 308 854 193 234 587 343 1,039 329 4,748 1,189 121 2,003 286 844 2,110 357 917 170 1,106 2,418 220 466 1,175 1,209 264 1,040 d Subject to volume cap [2] (5) 16,802 39 32 253 217 1,846 251 109 69 47 493 481 d 124 436 425 114 111 253 208 117 221 520 698 297 128 403 139 129 68 205 249 128 1,295 591 113 408 153 252 930 189 332 48 655 1,231 220 231 460 418 89 223 d Total volume cap [3] (6) 25,766.4 360.1 233.8 446.5 233.8 2,838.8 364.1 278.7 233.8 233.8 1,361.5 694.8 233.8 233.8 1,012.3 495.7 235.5 233.8 329.4 359.7 233.8 440.7 514.7 806.4 404.8 233.8 456.4 233.8 233.8 233.8 233.8 691.1 233.8 1,535.2 672.6 233.8 914.9 280.9 284.8 989.2 233.8 331.8 233.8 467.3 1,769.5 233.8 233.8 590.9 490.5 233.8 437.8 233.8 [Money amounts are in millions of dollars] d- Data deleted to avoid disclosure of information for specific bonds when compared to other published data. However, the data are included in the appropriate totals. [1] Excluding U.S. possessions. [2] These calculations are based on the data reported on Part II of Form 8038 for type of issue, and include the following: mass commuting facilities, water furnishing facilities, sewage facilities, solid waste disposal facilities, qualified residential rental projects, local furnishing of electric energy or gas, local district heating and cooling facilities, qualified hazardous waste facilities, high-speed intercity rail facilities, qualified mortgage bonds, qualified small issue bonds, qualified student loan bonds, and qualified redevelopment bonds. No distinction was made for Governmentally-owned solid waste facilities (which are not subject to the volume cap). As a result, figures could be slightly overstated. [3] The amount of volume cap is based on State population. For 2003, the volume cap was equal to the greater of $75 per capita or $228.6 million. For 2004, the volume cap was the greater of $80 per capita or $233.8 million. The resident population estimates were released by the U.S. Bureau of the Census and published in Internal Revenue Bulletins No. 2003-10 (Notice 2003-16) and No. 2004-11 (Notice 2004-21). 259 Tax-Exempt Bonds, 2003-2004 Of the total $24.2 billion in total volume cap for 2003, only $14.8 billion in new money private activity bonds were issued, leaving $9.4 billion to carry forward to future years. Of the total $25.8 billion in total volume cap for 2004, only $16.8 billion in new money private activity bonds were issued, leaving $9.0 billion to carry forward to future years. Unused volume cap amounts that are carried forward are often already earmarked for designated projects slated to commence within the next few years. The large amount of unused volume cap can also be attributed to the relatively low interest rates in 2003 and 2004, which applied not only to tax-exempt bonds, but also extended to taxable bonds. The narrowing gap between the interest rate on taxable bonds and that of tax-exempt State and local bonds for the period between 2000 and 2004 may have made taxable bond financing a more feasible option for some private borrowers who otherwise might have employed taxexempt bond financing. Figure K presents the top 15 States, ranked by the total dollar volume of new money long-term issues for 2004. These 15 States accounted for 66.3 percent of the total new money long-term bond issues during the specified time period. About $24.5 billion (51.1 percent) of the $47.9 billion of new money long-term bonds issued for 2004 were issued in the following nine States: California (12.2 percent), New York (9.9 percent), Texas (5.0 percent), Pennsylvania (4.4 percent), Illinois (4.2 percent), Georgia (4.2 percent), Ohio (4.2 percent), Massachusetts (3.5 percent), and Florida (3.4 percent). Combined, California and New York accounted for slightly more than one-third (35.6 percent) of the $5.6 billion of new money long-term residential rental bonds and 31.5 percent of the section 501(c)(3) bonds (excluding hospital bonds). Texas accounted for another 8.8 percent of the amount issued for residential rental projects. Table 10 shows all States’ new money long-term private activity bond issuances, classified by selected purpose of bond for 2003 and 2004. For a majority of States, more than half of all new money long-term issues were used to finance section 501(c)(3) projects, including hospitals. volume to date. Issuance volume then decreased 7 percent, to $330.4 billion, in 2004. Long-term new money issues, bonds with maturities of 13 months or more used to finance new projects, made up 43.7 percent of the total dollar volume in 2003 and 47.7 percent of the total in 2004. Bonds to refund prior Governmental issues accounted for 38.8 percent of the total $354.0 billion issued in 2003 and 37.0 percent of the total $330.4 billion in 2004. Similar to past years, projects related to education, transportation, and utilities received the bulk of Governmental bond financing for 2003 and 2004. Projects to fund educational purposes received 33.2 percent of total new money long-term Governmental bond proceeds in 2003, and 31.6 percent in 2004. Since 2002, there has been little growth in the total issuance of tax-exempt private activity bonds. Total tax-exempt private activity bond issuance averaged $93.6 billion annually over the last 3 years. Of the $93.1 billion in long-term tax-exempt private activity bonds issued in 2004, new money issues accounted for 51.4 percent of the total amount issued. This was an increase over 2003, where new money issues accounted for slightly less than half (49.3 percent) of the total amount of long-term taxexempt private activity bonds issued. Bonds issued for use by qualified section 501(c)(3) organizations (including qualified hospitals) and those to promote the development and purchase of affordable housing (through residential rental and single-family mortgage bonds) accounted for just over 70 percent of all long-term private activity bonds issued during 2003 and 2004. Data Sources and Limitations Summary 260 For 2003, a total of $354.0 billion of Governmental bonds was issued, compared to the $340.1 billion issued in 2002. This marked the highest issuance The data presented in this article are based on the populations of Forms 8038, Information Return for Tax-Exempt Private Activity Bond Issues, and Forms 8038-G, Information Return for Tax-Exempt Governmental Obligations, filed with the Internal Revenue Service for bonds issued during Calendar Years 2003 and 2004. The data presented in this article exclude returns filed for commercial paper transactions, as well as issues that are loans from the proceeds of other taxexempt issues (pooled financings). Bond issuers were required to file these tax-exempt bond returns by the 15th day of the 2nd calendar month after the close of the calendar quarter in which the bond was issued. However, in an effort Tax-Exempt Bonds, 2003-2004 Figure K New Money Long-Term Tax-Exempt Private Activity Bonds by Selected Purpose of Bond, for Top 15 States, Ranked by Issuance Volume, 2004 Selected purpose of bond State Total amount of bonds issued (1) All States........................ California......................... New York........................ Texas.............................. Pennsylvania.................. Illinois.............................. Georgia........................... Ohio................................ Massachusetts................ Florida............................. Indiana............................ Colorado......................... Washington..................... North Carolina................. Virginia............................ Maryland......................... 47,877 5,859 4,748 2,418 2,110 2,023 2,008 2,003 1,671 1,626 1,340 1,214 1,209 1,189 1,175 1,150 Other section Percent of total 501(c)(3) amount issued (2) 15,654 3,163 1,763 367 684 822 704 752 861 579 302 321 257 136 313 739 (3) 32.7 54.0 37.1 15.2 32.4 40.6 35.1 37.5 51.5 35.6 22.5 26.4 21.3 11.4 26.6 64.3 Section 501(c)(3) hospital (4) 11,074 616 452 486 468 657 275 843 280 359 155 551 266 376 386 190 Percent of total amount issued (5) 23.1 10.5 9.5 20.1 22.2 32.5 13.7 42.1 16.8 22.1 11.6 45.4 22.0 31.6 32.9 16.5 Residential rental (6) 5,551 1,055 923 489 d 287 388 102 218 276 45 31 237 34 56 106 Percent of total amount issued (7) 11.6 18.0 19.4 20.2 d 14.2 19.3 5.1 13.0 17.0 3.4 2.6 19.6 2.9 4.8 9.2 Mortgage (8) 5,063 511 284 304 311 d d d 127 39 d d 64 106 d 90 Percent of total amount issued (9) 10.6 8.7 6.0 12.6 14.7 d d d 7.6 2.4 d d 5.3 8.9 d 7.8 [Money amounts are in millions of dollars] d - Data deleted to avoid disclosure of information for specific bonds when compared to other published data. However, the data are included in the appropriate totals. to include as many applicable returns for a particular issue year as possible, the study period extended well beyond this timeframe. The study includes returns processed from January 1, 2003, to December 31, 2005, for bonds issued in 2003, and returns processed from January 1, 2004, to May 13, 2006, for bonds issued in 2004. Returns received after the cutoff date for each study year were not included in the statistics. During statistical processing, returns were subject to thorough testing and correction procedures to ensure accuracy and validity. Further checks were conducted to identify and exclude duplicate and amended returns. In some instances, returns with incomplete information, mathematical errors, or other reporting anomalies were edited to resolve internal inconsistencies. In other cases, it was not possible to reconcile reporting discrepancies. Thus, a certain amount of nonsampling error may remain. Explanation of Selected Terms Allocation to Reserve Fund.--Proceeds that are placed in reserve to be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements. The amount deposited into a reserve or replacement fund may not exceed 10 percent of the proceeds of an issue. Bond Anticipation Note (BAN).--Obligation that is issued in anticipation of a later issuance of bonds, payable from the proceeds of the sale of the bonds or of renewal notes. BANs typically have maturities of 3 years or less. Bond Issuance Costs.--Issuance costs include fees paid for trustees, bond counsel, and underwriters. Issuance costs paid out of private activity bond proceeds generally may not exceed 2 percent of the proceeds. Commercial Paper.--Commercial paper consists of short-term notes that are continually rolled over. Maturities range up to 270 days but average about 30 days. Many localities use commercial paper to raise cash needed for current transactions. Credit Enhancement.--Fees paid for items such as bond insurance premiums, letters-of-credit fees, and other additional forms of guaranty, all of which provide additional security in a bond financing. 261 Tax-Exempt Bonds, 2003-2004 Exempt Facility Bond.--Bond issue of which 95 percent or more of the net proceeds are used to finance a tax-exempt facility (as listed in Code sections 142(a)(1) through (13) and 142(k)). These facilities include airports, docks and wharves, mass commuting facilities, facilities for the furnishing of water, sewage facilities, solid waste disposal facilities, qualified residential rental projects, facilities for the local furnishing of electric energy or gas, local district heating or cooling facilities, qualified hazardous waste facilities, high-speed intercity rail facilities, environmental enhancements of hydroelectric generating facilities, and qualified public educational facilities. The Revenue Reconciliation Act of 1993 created a new category of bonds, qualified enterprise zone facility bonds, that may be issued for certain businesses in “empowerment zones” or “enterprise communities.” Empowerment Zone and Enterprise Community designations are made by the Secretaries of Agriculture and Housing and Urban Development, and last for a 10-year period. The Taxpayer Relief Act of 1997 provided certain economically depressed census tracts within the District of Columbia designation as the “D.C. Enterprise Zone.” Qualified enterprise zone facility bonds are generally subject to the same rules as exempt facility bonds. The Job Creation and Worker Assistance Act of 2002 created section 1400L of the Internal Revenue Code of 1986 to provide various tax benefits for the area of New York City damaged or affected by the terrorist attack on September 11, 2001. Section 1400L(d) authorizes the issuance of an additional type of exempt facility bond, namely, “Liberty Bonds.” Liberty Bonds are subject to the following additional requirements: (a) 95 percent or more of the net proceeds of such issue must be used for qualified project costs; (b) the bond must be issued by the State of New York or any political subdivision thereof; (c) the Governor of the State of New York or the Mayor of the City of New York must designate the bond for purposes of section 1400L(d); and (d) the bond must be issued after March 9, 2002, and before January 1, 2005. The maximum aggregate face amount of bonds that may be designated as Liberty Bonds is $8 billion. Governmental Bond.--Any obligation issued by a State or local government unit that is not a private activity bond (see below). The interest on a Govern262 mental bond is excluded from gross income under section 103 of the Internal Revenue Code. Nongovernmental Output Property Bond.--Bonds used to finance the acquisition of property used by a nongovernmental entity in connection with an output facility (such as an electric or gas power project). This bond must meet additional tests under Internal Revenue Code section 141(d). Pooled Financing.--An arrangement whereby a portion of the proceeds of a Governmental bond issue is used to make loans to other Governmental units. Private Activity Bond.--Bond issue of which more than 10 percent of the proceeds is used for any private business use, and more than 10 percent of the payment of the principal or interest is either secured by an interest in property to be used for private business use (or payment for such property), or is derived from payments for property (or borrowed money) used for a private business use. A bond is also considered a private activity bond if the amount of the proceeds used to make or finance loans (other than loans described in Internal Revenue Code section 141(c)(2)) to persons other than Governmental units exceeds the lesser of 5 percent of the proceeds or $5 million. Qualified Mortgage Bond.--Bond issue of which the proceeds (except issuance costs and reasonably required reserves) are used to provide financing assistance for single-family residential property, and which meets the additional requirements in Internal Revenue Code section 143. Bond proceeds can be applied toward the purchase, improvement, or rehabilitation of owner-occupied residences, as well as to finance qualified home-improvement loans. Qualified Redevelopment Bond.--Bond issue of which 95 percent or more of the net proceeds are used to finance certain specified real property acquisition and redevelopment in blighted areas (see Internal Revenue Code section 144(c) for additional requirements). Qualified Section 501(c)(3) Bond.--Bonds issued by State and local governments to finance the activities of charitable, educational, hospital, and similar organizations that are tax-exempt under Internal Revenue Code section 501(c)(3). A bond must meet the following conditions to be classified as a section 501(c)(3) bond: 1) all property financed by the net proceeds of the bond issue is to be owned by a sec- Tax-Exempt Bonds, 2003-2004 tion 501(c)(3) organization or a governmental unit, and 2) the bond would not be a private activity bond if section 501(c)(3) organizations were treated as governmental units with respect to their activities that are not related trades or businesses, and the private activity bond definition was applied using a 5percent threshold rather than a 10-percent threshold. The primary beneficiaries of these bonds are private, nonprofit hospitals, colleges, and universities. A section 501(c)(3) hospital bond issue is one in which 95 percent or more of the net proceeds are to be used for a hospital. The category of bond issues referred to as “other section 501(c)(3)” includes bond issues that are not related to hospitals. Qualified Small Issue Bond.--Bond issue generally not exceeding $1 million, and of which 95 percent or more of the net proceeds are used to finance the acquisition of land and depreciable property or to refund such issues. In certain instances, an election to take certain capital expenditures into account can increase the limit on bond size, from $1 million to $10 million. These bonds may only be used to finance manufacturing facilities and to benefit certain first-time farmers. Qualified Student Loan Bond.--Bond issue of which 90 percent or more of the net proceeds are used to make or finance student loans under a program of general application to which the Higher Education Act of 1965 applies (see Internal Revenue Code section 144(b)(1)(A) for additional requirements), or of which 95 percent or more of the net proceeds are used to make or finance student loans under a program of general application approved by the State (see Code section 144(b)(1)(B) for additional requirements). Qualified Veterans’ Mortgage Bond.--In general, a bond issue of which 95 percent or more of the net proceeds are used to provide residences for veterans who: 1) served prior to January 1, 1977; and 2) applied for such a mortgage prior to the date 30 years after leaving active service or January 31, 1985, whichever is later. The payment of interest and principal must be secured by a general obligation of the State, and the bond must meet certain of the requirements of Internal Revenue Code section 143. The issuance of qualified veterans’ mortgage bonds was limited to the following five States: Alaska, California, Oregon, Texas, and Wisconsin, each of which had a veterans’ mortgage bond program in effect prior to June 22, 1984. Tax Reform Act Transition Property Bond.-- A bond issued under transitional rules contained in the Tax Reform Act of 1986. Proceeds from bonds issued under these rules include issues used to fund items such as pollution control facilities, parking facilities, industrial parks, sports stadiums, and convention facilities. Proceeds from other bonds issued under the transitional rules are included in this category only if they could not be identified as another issue type. Notes and References Additional tax-exempt bond data, including data by type of issue, State, size of issue, and uses of proceeds, for various years can be found on the SOI Web site: (click on “Tax-Exempt Bonds”). [1] In addition, for State income tax purposes, some States allow for the exclusion of interest on bonds issued by government agencies within their own State, thus increasing the benefit to bondholders. [2] This estimate is based on tax-exempt bonds that will bear interest in Fiscal Year 2007, regardless of when the bonds were originally issued. Revenue loss estimates are from the annual Budget of the United States Government, Fiscal Year 2007, Analytical Perspectives, Table 19-1: Estimates of Total Income Tax Expenditures . [3] The term “State” includes the District of Columbia and any possession of the United States. [4] An arbitrage bond is one in which any portion of the proceeds is intentionally invested in higher-yielding investments, or is used to replace proceeds which have been intentionally invested in higher-yielding investments. Certain rules allow for arbitrage earnings with respect to tax-exempt bonds within a specified time period, so long as these earnings are rebated to the Department of the Treasury. [5] A registered bond is defined as: “a bond whose owner is designated on records maintained by 263 Tax-Exempt Bonds, 2003-2004 a registrar, the ownership of which cannot be transferred without the registrar recording the transfer on its records.” (From the Municipal Securities Rulemaking Board’s Glossary of Municipal Securities Terms .) See also Internal Revenue Code section 149(a) for additional information. [6] Call provisions allow the issuer to retire all or a portion of the bonds prior to the stated maturity date. Many State and local bonds were issued with call provisions that allowed the issuer to retire the bonds beginning 10 years from the date of issue, usually at par (face value) or at a small premium above par. [7] A transition rule allows bonds issued before the effective date of the Tax Reform Act of 1986 to be advance refunded twice (once if they had already been advance refunded one or more times before that date). [8] The Job Creation and Worker Assistance Act of 2002 (Public Law 107-47) included changes to tax-exempt bond law intended to provide recovery assistance to businesses in the New York City area in the aftermath of the terrorist attacks of September 11, 2001. Specifically, the new law allowed for an additional advance refunding for certain bonds that had already been advance refunded prior to September 12, 2001. The refunding bonds must have been outstanding on September 11, 2001, and at least 90 percent (95 percent for 501(c)(3) bonds) of the facilities financed under the original issue must have been located within the area designated as the “New York Liberty Zone.” (Certain facilities located outside New York City were also deemed eligible.) Qualified bonds were designated by the Governor of New York or the Mayor of New York City as “liberty advance refunding bonds.” The provision was effective for bonds issued after March 9, 2002, and before January 1, 2005. See Internal Revenue Service Notice 2002-42, 2002-27 Internal Revenue Bulletin 36, for additional information. [9] For 2003, the volume cap was equal to the greater of $75 per capita or $228.6 million. For 2004, the volume cap was the greater of $80 per capita or $233.8 million. Volume caps for U.S. possessions, with the exception of Puerto Rico, are determined under Internal Revenue Code section 146(d)(4). [10] Obtained from the Federal Reserve Board, “Federal Statistical Release H.15: Selected Interest Rates, Historical Data” . [11] Form 8038-G returns with a total issue price less than $100,000 are excluded from the study. Issuers of these bonds are instructed to file Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales. Statistics of Income (SOI) does not process data from Forms 8038GC filed with the Internal Revenue Service. [12] The resident population estimates were released by the U.S. Bureau of the Census and published in Internal Revenue Bulletin No. 2004-11 (Notice 2004-21). [13] Internal Revenue Code section 141(b)(5) states that a Governmental bond will be treated as a private activity bond if: 1) the “nonqualified amount” exceeds $15 million, but is less than the amount needed to meet any of the private activity bond tests; and 2) the issuer does not allocate a portion of its volume cap to the issue in an amount equal to the excess of such nonqualified amount over $15 million. [14] For privately-owned high-speed intercity rail facilities, only 25 percent of the bonds issued are included in the volume cap calculation. [15] Educational facility bonds are limited to the greater of $10 per capita or $5 million. Liberty bonds are subject to an $8-billion aggregate issuance limitation. Section 501(c)(3) bonds (other than qualified hospital bonds) were subject to a cap of $150 million per organization. [16] Amounts subject to the volume cap were calculated using the data reported on Part II of Form 8038 for type of issue, prorated according to the percent of the issue that was new money. The types of bonds include the following: mass commuting facilities, water furnishing facilities, sewage facilities, solid waste disposal facilities, qualified residential rental projects, 264 Tax-Exempt Bonds, 2003-2004 local furnishing of electric energy or gas, local district heating and cooling facilities, qualified hazardous waste facilities, high-speed intercity rail facilities, qualified mortgage bonds, qualified small issue bonds, qualified student loan bonds, qualified redevelopment bonds, and “other bonds” (i.e., obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038 return). No distinction was made for Governmentallyowned solid waste facilities (which are not subject to the volume cap), and, as a result, estimated amounts subject to the cap could be slightly overstated. 265 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 1.--Volume of Governmental Bonds by Type and Term of Issue, 2003 and 2004 Issue year Type and term of issue Number (1) 2003 Amount (2) 28,085 7,485 20,600 20,600 5,753 14,847 10,086 2,341 7,745 353,994 71,380 282,614 216,503 61,751 154,752 137,491 9,629 127,862 Number (3) 25,889 6,992 18,897 19,649 5,230 14,419 8,424 2,372 6,052 2004 Amount (4) 330,413 60,931 269,481 208,201 50,484 157,717 122,212 10,448 111,764 All issues, total [1]........................................................................... Short-term...................................................................................... Long-term....................................................................................... New money issues, total................................................................. Short-term...................................................................................... Long-term....................................................................................... Refunding issues, total.................................................................... Short-term...................................................................................... Long-term....................................................................................... [1] A given bond issue can include both new money and refunding proceeds. Thus, the number of new money issues plus the number of refunding issues will not always equal the number of total issues. However, the money amounts are additive to the totals. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006. 266 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 2.--Long-Term Governmental Bonds, by Purpose of Bond and Type of Issue, 2003 and 2004 2003 All issues Purpose of bond Number (1) Amount (2) 282,614 82,368 5,386 33,973 7,877 17,944 2,572 44,601 2,981 84,912 All issues Purpose of bond Number (10) Amount (11) 269,481 80,630 5,481 31,934 5,819 18,746 1,293 28,701 1,593 95,285 Percent of total amount (12) 100.0 29.9 2.0 11.9 2.2 7.0 0.5 10.7 0.6 35.4 Percent of total amount (3) 100.0 29.1 1.9 12.0 2.8 6.3 0.9 15.8 1.1 30.0 New money issues Number (4) 14,847 4,653 403 983 2,082 1,121 156 1,673 292 4,415 Amount (5) 154,752 51,309 2,478 17,660 4,754 7,800 1,809 17,132 1,585 50,225 2004 New money issues Number (13) 14,419 4,553 396 995 1,933 1,062 138 1,537 295 4,403 Amount (14) 157,717 49,837 3,788 20,148 3,715 11,798 931 12,467 1,024 54,008 Percent of total amount (15) 100.0 31.6 2.4 12.8 2.4 7.5 0.6 7.9 0.6 34.2 Number (16) 6,052 2,064 113 420 380 649 67 1,047 40 2,003 Refunding issues Amount (17) 111,764 30,793 1,693 11,786 2,104 6,948 362 16,234 569 41,276 Percent of total amount (18) 100.0 27.6 1.5 10.5 1.9 6.2 0.3 14.5 0.5 36.9 Percent of total amount (6) 100.0 33.2 1.6 11.4 3.1 5.0 1.2 11.1 1.0 32.5 Number (7) 7,745 2,626 147 430 421 836 69 1,437 99 2,433 Refunding issues Amount (8) 127,862 31,060 2,908 16,313 3,123 10,145 763 27,468 1,397 34,687 Percent of total amount (9) 100.0 24.3 2.3 12.8 2.4 7.9 0.6 21.5 1.1 27.1 Total [1].................................................. Education.................................................... Health and hospital..................................... Transportation............................................. Public safety............................................... Environment................................................ Housing....................................................... Utilities........................................................ Bond and tax/revenue anticipation notes… Other bond purposes [2]............................. 20,600 6,672 505 1,254 2,358 1,717 203 2,721 335 6,087 Total [1].................................................. Education.................................................... Health and hospital..................................... Transportation............................................. Public safety............................................... Environment................................................ Housing....................................................... Utilities........................................................ Bond and tax/revenue anticipation notes… Other bond purposes [2]............................. 18,897 6,154 471 1,244 2,180 1,501 184 2,309 312 5,814 [1] A given issue can include more than one purpose and can include both new money and refunding proceeds. Thus, the summation of number of issues by purpose or by type of issue will sometimes exceed the total number of issues. However, the money amounts are additive to the totals. [2] For purposes of this table, "other bond purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006. 267 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 3.--Computation of Lendable Proceeds for Long-Term Governmental Bonds, by Purpose of Bond, 2003 and 2004 Issue year Entire issue price Number (1) 2003 Total [1].................................................. Education.................................................... Health and hospital...................................... Transportation............................................. Public safety................................................ Environment................................................ Housing....................................................... Utilities......................................................... Bond and tax/revenue anticipation notes.... Other bonds [2]............................................ Total [1].................................................. Education.................................................... Health and hospital...................................... Transportation............................................. Public safety................................................ Environment................................................ Housing....................................................... Utilities......................................................... Bond and tax/revenue anticipation notes.... Other bonds [2]............................................ 20,600 6,672 505 1,254 2,358 1,717 203 2,721 335 6,087 18,897 6,154 471 1,244 2,180 1,501 184 2,309 312 5,814 Amount (2) 282,614 82,368 5,386 33,973 7,877 17,944 2,572 44,601 2,981 84,912 269,481 80,630 5,481 31,934 5,819 18,746 1,293 28,701 1,593 95,285 Bond issuance costs Number (3) 13,661 4,595 246 893 822 1,261 141 2,242 261 4,385 12,330 4,122 226 901 749 1,091 119 1,878 229 4,183 Amount (4) 2,577 717 47 256 82 174 32 435 13 821 2,363 729 50 243 56 165 19 308 6 787 Credit enhancement Number (5) 5,562 2,211 d 346 297 484 39 955 d 1,679 5,148 2,146 80 369 294 396 d 785 d 1,596 Amount (6) 1,213 223 d 215 28 74 14 228 d 376 1,007 198 48 168 26 49 d 149 d 358 Allocation to reserve fund Number (7) 1,563 244 d 101 57 153 40 399 d 575 1,458 280 35 106 50 157 d 307 d 518 Amount (8) 3,499 304 d 403 64 196 91 633 d 1,753 2,568 325 106 436 45 347 d 364 d 917 Purpose of bond 2004 Issue year Purpose of bond Total lendable proceeds Number (9) Amount (10) 275,326 81,124 5,233 33,098 7,703 17,500 2,435 43,304 2,967 81,961 263,543 79,378 5,276 31,087 5,692 18,185 1,239 27,881 1,583 93,222 Proceeds used to refund prior issues Number (11) 7,745 2,626 147 430 421 836 69 1,437 99 2,433 6,052 2,064 113 420 380 649 67 1,047 40 2,003 Amount (12) 125,379 30,633 2,840 15,929 3,074 9,939 744 26,874 1,391 33,956 109,772 30,416 1,643 11,525 2,064 6,751 350 15,919 565 40,540 Nonrefunding proceeds Number (13) 14,847 4,653 403 983 2,082 1,121 156 1,673 292 4,415 14,419 4,553 396 995 1,933 1,062 138 1,537 295 4,403 Amount (14) 149,946 50,491 2,393 17,169 4,629 7,562 1,691 16,429 1,576 48,006 153,771 48,961 3,634 19,561 3,629 11,435 889 11,962 1,019 52,682 2003 Total [1].......................................................................................... Education............................................................................................ Health and hospital.............................................................................. Transportation..................................................................................... Public safety........................................................................................ Environment........................................................................................ Housing............................................................................................... Utilities................................................................................................. Bond and tax/revenue anticipation notes............................................ Other bonds [2].................................................................................... Total [1].......................................................................................... Education............................................................................................ Health and hospital.............................................................................. Transportation..................................................................................... Public safety........................................................................................ Environment........................................................................................ Housing............................................................................................... Utilities................................................................................................. Bond and tax/revenue anticipation notes............................................ Other bonds [2].................................................................................... 20,600 6,672 505 1,254 2,358 1,717 203 2,721 335 6,087 18,897 6,154 471 1,244 2,180 1,501 184 2,309 312 5,814 2004 d - Data were deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals. [1] A given bond issue can include more than one purpose and can include both new money and refunding proceeds. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the money amounts are additive to the totals. [2] For purposes of this table, "other bonds" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006. 268 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars] Table 4.--New Money Long-Term Governmental Bonds, by Purpose of Bond and Size of Entire Issue, 2003 and 2004 All issues Number (1) 2003 Total [2].................................................... Education...................................................... Health and hospital....................................... Transportation............................................... Public safety.................................................. Environment.................................................. Housing......................................................... Utilities.......................................................... Bond and tax/revenue anticipation notes...... Other bond purposes [3]............................... Total [2].................................................... Education...................................................... Health and hospital....................................... Transportation............................................... Public safety.................................................. Environment.................................................. Housing......................................................... Utilities.......................................................... Bond and tax/revenue anticipation notes...... Other bond purposes [3]............................... 14,847 4,653 403 983 2,082 1,121 156 1,673 292 4,415 14,419 4,553 396 995 1,933 1,062 138 1,537 295 4,403 Amount (2) 154,752 51,309 2,478 17,660 4,754 7,800 1,809 17,132 1,585 50,225 157,717 49,837 3,788 20,148 3,715 11,798 931 12,467 1,024 54,008 Size of entire issue $500,000 under $1,000,000 Number (5) 1,849 514 55 114 274 157 15 218 43 510 1,753 457 47 127 232 142 17 209 52 538 Amount (6) 1,245 355 38 72 183 95 9 131 30 331 1,181 314 31 73 153 86 10 127 33 354 $1,000,000 under $5,000,000 Number (7) 3,744 1,061 105 257 279 353 58 589 120 1,215 3,613 1,023 118 260 292 278 67 547 136 1,158 Amount (8) 8,257 2,340 215 435 498 665 137 1,185 308 2,474 8,180 2,375 246 467 512 473 154 1,159 308 2,486 Issue year Purpose of bond Under $500,000 [1] Number (3) 5,373 1,531 141 332 1,284 296 d 371 d 1,406 5,279 1,530 127 293 1,204 308 23 322 55 1,459 Amount (4) 1,268 367 32 71 288 69 d 90 d 333 1,249 354 33 64 270 76 6 84 16 346 2004 Issue year Purpose of bond $5,000,000 under $10,000,000 Number (9) Amount (10) 9,000 3,257 178 442 486 560 93 1,040 234 2,710 8,977 3,380 155 447 420 574 48 1,027 220 2,704 Size of entire issue--continued $10,000,000 $25,000,000 under under $25,000,000 $75,000,000 Number (11) 1,194 543 23 73 78 79 d 131 d 401 1,182 507 30 69 58 95 14 123 12 418 Amount (12) 15,817 7,129 274 728 593 579 d 1,378 d 4,706 16,279 6,958 351 652 569 838 169 1,515 126 5,102 Number (13) 788 348 27 38 40 58 12 85 23 250 777 389 24 69 40 65 d 103 d 223 Amount (14) 27,413 12,273 858 1,041 840 1,611 315 2,537 469 7,468 28,694 13,738 753 1,733 601 1,559 d 3,246 d 6,961 $75,000,000 or more Number (15) 445 149 18 73 30 46 10 75 5 137 437 145 25 82 25 57 d 51 d 139 Amount (16) 91,751 25,589 883 14,870 1,866 4,220 1,084 10,772 265 32,203 93,158 22,718 2,220 16,711 1,190 8,191 d 5,308 d 36,056 2003 Total [2].................................................... Education...................................................... Health and hospital....................................... Transportation............................................... Public safety.................................................. Environment.................................................. Housing......................................................... Utilities.......................................................... Bond and tax/revenue anticipation notes...... Other bond purposes [3]............................... Total [2].................................................... Education...................................................... Health and hospital....................................... Transportation............................................... Public safety.................................................. Environment.................................................. Housing......................................................... Utilities.......................................................... Bond and tax/revenue anticipation notes...... Other bond purposes [3]............................... 1,454 507 34 96 97 132 19 204 37 496 1,378 502 25 95 82 117 7 182 36 468 2004 d - Data were deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals. [1] Form 8038-G returns with an entire issue price less than $100,000 are excluded from the study. Issuers of these bonds are instructed to file Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales. Statistics of Income (SOI) does not process data from the Forms 8038-GC filed with the Internal Revenue Service. [2] A given bond issue can include more than one “purpose.” Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the money amounts are additive to the totals. [3] For purposes of this table, "other bond purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006. 269 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 5.--New Money Long-Term Governmental Bonds, by State of Issue and Selected Purpose of Bond, 2003 and 2004 Selected purpose of bond Total [1] State of issue 2003 Number (1) 14,847 283 36 241 250 1,185 289 117 20 6 501 272 20 125 761 410 378 259 212 246 140 143 221 582 596 173 313 70 465 77 69 458 127 688 397 124 403 280 145 629 39 269 64 181 1,154 188 46 292 284 101 469 37 12 Amount (2) 154,752 1,623 945 3,046 759 28,580 2,791 2,114 501 866 9,016 2,683 592 317 6,299 2,900 925 846 921 1,839 280 2,885 2,867 4,263 2,403 526 2,205 138 1,417 1,684 651 6,940 763 17,744 3,567 266 3,103 1,252 1,478 5,622 543 2,035 194 2,399 9,358 956 143 2,624 3,809 240 2,157 37 2,636 2004 Number (3) 14,419 257 32 262 210 1,096 334 131 36 d 497 264 14 101 732 381 320 238 295 218 130 154 229 543 642 235 325 53 498 68 72 370 139 691 424 98 395 308 113 599 46 259 78 182 1,151 143 d 252 225 105 377 44 8 Amount (4) 157,717 1,708 594 3,572 1,043 33,501 3,765 2,317 395 d 6,734 4,163 639 180 6,773 3,001 970 1,587 1,262 1,689 303 2,087 3,403 4,050 3,142 661 1,714 131 465 1,540 282 8,137 1,973 12,076 3,636 219 4,916 1,184 999 4,332 470 2,190 181 1,480 11,318 843 d 3,677 3,654 739 1,804 71 1,376 2003 Number (5) 4,653 55 8 89 131 480 70 52 5 0 73 66 d 29 338 181 93 47 89 45 66 49 65 163 86 45 107 13 52 16 16 209 52 321 65 35 145 197 36 238 9 66 19 27 366 41 10 69 80 22 100 d 0 Amount (6) 51,309 665 559 1,281 437 11,870 906 440 187 0 2,950 788 d 207 2,034 1,843 262 301 440 322 71 1,046 392 1,941 413 134 896 32 326 583 247 2,001 219 2,151 1,531 41 1,687 422 316 2,659 86 865 75 185 4,424 390 47 1,074 979 91 481 d 0 Education 2004 Number (7) 4,553 53 7 108 95 503 62 62 5 0 55 60 0 20 319 140 84 53 163 39 63 43 81 170 110 43 94 13 29 22 16 159 42 304 71 25 125 214 32 244 14 75 29 28 376 31 d 88 61 22 74 22 d Amount (8) 49,837 1,151 159 1,054 577 9,623 1,296 320 133 0 1,957 980 0 91 1,598 1,229 395 231 692 508 57 512 633 2,364 757 274 457 66 77 633 66 3,207 205 1,457 1,525 75 1,915 548 199 1,977 133 643 89 271 6,303 317 d 1,471 720 563 275 32 d Footnotes at end of table. All States.......................................................... Alabama................................................................ Alaska.................................................................... Arizona.................................................................. Arkansas................................................................ California............................................................... Colorado................................................................ Connecticut............................................................ Delaware............................................................... District of Columbia............................................... Florida.................................................................... Georgia.................................................................. Hawaii.................................................................... Idaho...................................................................... Illinois..................................................................... Indiana................................................................... Iowa....................................................................... Kansas................................................................... Kentucky................................................................ Louisiana............................................................... Maine..................................................................... Maryland................................................................ Massachusetts....................................................... Michigan................................................................ Minnesota.............................................................. Mississippi............................................................. Missouri................................................................. Montana................................................................. Nebraska............................................................... Nevada.................................................................. New Hampshire..................................................... New Jersey............................................................ New Mexico........................................................... New York............................................................... North Carolina....................................................... North Dakota......................................................... Ohio....................................................................... Oklahoma.............................................................. Oregon................................................................... Pennsylvania......................................................... Rhode Island......................................................... South Carolina....................................................... South Dakota......................................................... Tennessee............................................................. Texas..................................................................... Utah....................................................................... Vermont................................................................. Virginia................................................................... Washington............................................................ West Virginia......................................................... Wisconsin.............................................................. Wyoming................................................................ U.S. Possessions [2]............................................ 270 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 5.--New Money Long-Term Governmental Bonds, by State of Issue and Selected Purpose of Bond, 2003 and 2004--Continued Selected purpose of bond--continued State of issue Health and hospital 2003 Number (9) 403 11 d d 13 59 10 3 d 0 5 8 9 9 11 6 12 9 4 18 d 9 d 14 12 8 10 d 7 d 0 5 d 16 10 d 16 7 3 5 0 16 0 6 24 4 0 10 11 d 6 d d Amount (10) 2,478 73 d d 43 97 209 150 d 0 140 36 7 18 42 151 35 10 1 109 d 30 d 49 50 37 155 d 5 d 0 41 d 12 219 d 96 23 5 5 0 251 0 141 70 14 0 14 35 d 7 d d 2004 Number (11) 396 13 3 3 11 45 14 0 0 0 d 12 9 6 11 11 12 12 4 20 d 5 9 8 10 10 18 0 9 d d 4 7 14 7 d 8 3 3 d d 6 d 6 15 4 0 8 31 4 5 3 0 Amount (12) 3,788 45 31 17 17 911 234 0 0 0 d 145 20 5 81 161 29 6 15 115 d 11 15 69 30 48 26 0 22 d d 13 292 353 21 d 34 1 1 d d 195 d 34 157 8 0 21 449 12 4 7 0 2003 Number (13) 983 10 10 37 7 43 18 8 3 d 35 6 0 26 34 28 39 51 6 20 18 15 13 53 33 5 22 11 19 9 5 12 d 40 11 7 24 9 13 32 3 9 9 9 55 14 d 19 19 d 103 d d Transportation 2004 Amount (14) 17,660 31 158 599 30 1,816 200 9 236 d 1,271 445 0 5 977 384 100 46 7 121 80 493 32 153 110 21 407 13 6 342 10 1,313 d 3,419 485 18 33 57 22 932 292 22 3 4 589 232 d 93 768 d 514 d d Number (15) 995 18 6 16 10 43 51 13 16 0 42 7 0 24 29 27 29 48 6 8 12 23 32 28 46 16 41 3 24 4 10 15 6 55 16 d 31 12 6 22 d 12 16 9 52 5 0 9 14 d 67 d d Amount (16) 20,148 52 64 939 100 2,036 608 227 108 0 894 589 0 8 801 474 23 735 17 82 101 709 403 241 247 21 148 1 46 383 9 1,300 779 3,554 352 d 501 58 305 427 d 607 5 38 586 56 0 155 596 d 385 d d Footnotes at end of table. All States.......................................................... Alabama................................................................ Alaska.................................................................... Arizona.................................................................. Arkansas................................................................ California............................................................... Colorado................................................................ Connecticut............................................................ Delaware............................................................... District of Columbia............................................... Florida.................................................................... Georgia.................................................................. Hawaii.................................................................... Idaho...................................................................... Illinois..................................................................... Indiana................................................................... Iowa....................................................................... Kansas................................................................... Kentucky................................................................ Louisiana............................................................... Maine..................................................................... Maryland................................................................ Massachusetts....................................................... Michigan................................................................ Minnesota.............................................................. Mississippi............................................................. Missouri................................................................. Montana................................................................. Nebraska............................................................... Nevada.................................................................. New Hampshire..................................................... New Jersey............................................................ New Mexico........................................................... New York............................................................... North Carolina....................................................... North Dakota......................................................... Ohio....................................................................... Oklahoma.............................................................. Oregon................................................................... Pennsylvania......................................................... Rhode Island......................................................... South Carolina....................................................... South Dakota......................................................... Tennessee............................................................. Texas..................................................................... Utah....................................................................... Vermont................................................................. Virginia................................................................... Washington............................................................ West Virginia......................................................... Wisconsin.............................................................. Wyoming................................................................ U.S. Possessions [2]............................................ 271 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 5.--New Money Long-Term Governmental Bonds, by State of Issue and Selected Purpose of Bond, 2003 and 2004--Continued Selected purpose of bond--continued State of issue Public safety 2003 Number (17) 2,082 48 4 36 19 102 49 24 d d 100 52 0 15 53 71 23 32 30 46 21 38 38 65 39 16 47 4 21 7 12 56 32 121 138 3 80 16 24 108 d 69 6 34 123 24 d 67 41 40 63 4 0 Amount (18) 4,754 82 2 46 26 1,053 53 20 d d 118 155 0 7 162 117 15 45 22 50 7 105 35 74 116 21 90 8 9 40 24 163 23 357 317 1 95 62 28 183 d 71 12 47 353 27 d 282 45 34 65 1 0 2004 Number (19) 1,933 34 4 32 16 86 61 26 10 d 65 44 0 14 57 69 19 20 33 51 27 25 39 43 19 22 55 3 23 d 19 85 31 119 131 d 66 d 16 98 15 63 6 24 126 26 d 52 25 41 46 4 d Amount (20) 3,715 83 1 126 71 672 160 21 9 d 127 119 0 7 174 195 11 21 41 84 18 89 27 61 57 6 75 [3] 17 d 19 80 29 149 328 d 103 d 25 72 11 56 6 33 121 31 d 107 31 69 68 20 d 2003 Number (21) 1,121 10 0 12 12 41 7 13 7 d 16 61 0 17 36 23 41 33 15 24 8 26 46 91 40 5 26 16 13 13 6 20 8 25 23 4 25 3 6 105 10 19 5 4 60 15 6 22 12 13 71 4 d Environment 2004 Amount (22) 7,800 120 0 195 10 1,030 15 27 14 d 489 403 0 17 232 92 101 13 10 180 11 248 355 1,007 96 1 176 18 64 110 10 210 16 415 139 29 212 5 211 321 105 187 9 6 264 18 2 63 13 74 338 3 d Number (23) 1,062 8 d 8 18 50 10 18 5 d 22 66 0 11 29 28 29 33 5 22 7 37 40 101 48 7 23 13 8 10 9 16 11 25 18 5 26 d 8 85 9 20 4 10 41 8 d 9 13 8 66 d d Amount (24) 11,798 9 d 286 62 2,182 17 13 33 d 108 1,472 0 26 232 499 131 163 109 195 12 251 515 691 214 1 290 15 6 320 13 230 11 277 204 3 836 d 185 284 119 55 42 71 426 5 d 239 204 32 335 d d Footnotes at end of table. All States.......................................................... Alabama................................................................ Alaska.................................................................... Arizona.................................................................. Arkansas................................................................ California............................................................... Colorado................................................................ Connecticut............................................................ Delaware............................................................... District of Columbia............................................... Florida.................................................................... Georgia.................................................................. Hawaii.................................................................... Idaho...................................................................... Illinois..................................................................... Indiana................................................................... Iowa....................................................................... Kansas................................................................... Kentucky................................................................ Louisiana............................................................... Maine..................................................................... Maryland................................................................ Massachusetts....................................................... Michigan................................................................ Minnesota.............................................................. Mississippi............................................................. Missouri................................................................. Montana................................................................. Nebraska............................................................... Nevada.................................................................. New Hampshire..................................................... New Jersey............................................................ New Mexico........................................................... New York............................................................... North Carolina....................................................... North Dakota......................................................... Ohio....................................................................... Oklahoma.............................................................. Oregon................................................................... Pennsylvania......................................................... Rhode Island......................................................... South Carolina....................................................... South Dakota......................................................... Tennessee............................................................. Texas..................................................................... Utah....................................................................... Vermont................................................................. Virginia................................................................... Washington............................................................ West Virginia......................................................... Wisconsin.............................................................. Wyoming................................................................ U.S. Possessions [2]............................................ 272 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 5.--New Money Long-Term Governmental Bonds, by State of Issue and Selected Purpose of Bond, 2003 and 2004--Continued Selected purpose of bond--continued State of issue Utilities 2003 Number (25) 1,673 48 0 16 53 104 31 7 d 0 67 19 0 8 65 26 50 64 38 20 7 9 25 47 75 9 42 3 47 5 7 21 d 27 35 50 21 19 16 36 d 24 10 54 256 51 6 10 44 d 85 4 d Amount (26) 17,132 175 0 270 151 3,014 438 175 d 0 1,840 384 0 9 98 84 66 127 81 64 7 59 30 507 224 17 77 5 829 159 48 1,611 d 372 153 97 163 165 131 78 d 193 73 1,630 2,017 154 3 26 652 d 176 4 d 2004 Number (27) 1,537 22 d 11 44 69 52 7 0 0 55 21 d 5 44 18 44 42 49 31 9 14 26 45 89 9 38 3 43 d 7 8 14 27 42 45 21 28 10 27 d 15 4 47 272 32 d 17 30 d 81 d 0 Amount (28) 12,467 129 d 301 102 2,398 622 36 0 0 878 236 d 7 173 209 74 198 101 243 5 122 81 145 433 79 298 3 92 d 10 24 154 365 393 111 136 230 62 240 d 369 5 281 1,758 209 d 247 515 d 193 d 0 All other bonds, combined [4] 2003 Number (29) 4,863 119 13 63 25 366 109 53 5 d 209 74 10 21 242 75 166 89 32 78 37 73 138 149 327 85 67 23 315 25 30 178 30 161 141 23 113 34 48 138 9 74 15 72 282 46 16 133 84 19 217 5 d Amount (30) 53,619 478 176 656 63 9,699 970 1,293 58 d 2,208 472 585 55 2,755 230 346 306 361 993 103 903 2,017 531 1,394 294 403 61 178 424 313 1,602 493 11,018 722 75 816 519 765 1,444 46 446 21 386 1,641 121 70 1,072 1,317 34 576 10 d 2004 Number (31) 4,836 117 10 84 25 306 119 68 4 d 264 63 3 21 262 89 140 83 38 54 28 71 119 149 343 128 59 18 367 17 27 105 32 189 175 15 143 39 38 137 16 78 18 82 286 41 d 99 55 25 163 9 3 Amount (32) 55,964 239 300 849 115 15,678 827 1,700 112 d 2,652 622 509 36 3,714 235 307 233 286 463 112 393 1,730 478 1,404 232 421 47 205 137 162 3,282 502 5,921 813 19 1,390 327 222 1,330 135 265 33 752 1,967 217 d 1,437 1,138 57 543 8 899 d - Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals. [1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the money amounts are additive to the totals. [2] U.S. Possessions include Puerto Rico, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands [3] Indicates an amount less than $500,000. [4] For purposes of this table, certain bond purposes were combined. For this reason, data in this table will differ slightly from the data in Figure D. The "all other bonds, combined" category here includes housing bonds, bond anticipation notes, and tax and revenue anticipation notes, as well as those obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006. All States.......................................................... Alabama................................................................ Alaska.................................................................... Arizona.................................................................. Arkansas................................................................ California............................................................... Colorado................................................................ Connecticut............................................................ Delaware............................................................... District of Columbia............................................... Florida.................................................................... Georgia.................................................................. Hawaii.................................................................... Idaho...................................................................... Illinois..................................................................... Indiana................................................................... Iowa....................................................................... Kansas................................................................... Kentucky................................................................ Louisiana............................................................... Maine..................................................................... Maryland................................................................ Massachusetts....................................................... Michigan................................................................ Minnesota.............................................................. Mississippi............................................................. Missouri................................................................. Montana................................................................. Nebraska............................................................... Nevada.................................................................. New Hampshire..................................................... New Jersey............................................................ New Mexico........................................................... New York............................................................... North Carolina....................................................... North Dakota......................................................... Ohio....................................................................... Oklahoma.............................................................. Oregon................................................................... Pennsylvania......................................................... Rhode Island......................................................... South Carolina....................................................... South Dakota......................................................... Tennessee............................................................. Texas..................................................................... Utah....................................................................... Vermont................................................................. Virginia................................................................... Washington............................................................ West Virginia......................................................... Wisconsin.............................................................. Wyoming................................................................ U.S. Possessions [2]............................................ 273 Tax-Exempt Bonds, 2003-2004 Table 6.--Volume of Tax-Exempt Private Activity Bonds by Type and Term of Issue, 2003 and 2004 [Money amounts are in millions of dollars] Issue year Type and term of issue Number (1) All issues, total [1]................................................................................... Short-term.............................................................................................. Long-term............................................................................................... New money issues, total......................................................................... Short-term.............................................................................................. Long-term............................................................................................... Refunding issues, total........................................................................... Short-term.............................................................................................. Long-term............................................................................................... 4,159 97 4,062 2,773 52 2,721 1,931 49 1,882 2003 Amount (2) 93,908 1,278 92,630 46,022 389 45,633 47,886 889 46,997 Number (3) 3,621 72 3,549 2,586 42 2,544 1,535 35 1,500 2004 Amount (4) 94,032 934 93,098 48,099 222 47,877 45,933 712 45,221 [1] A given bond issue can include both new money and refunding proceeds. Thus, the number of new money issues plus the number of refunding issues will not always equal the number of total issues. However, the money amounts are additive to the totals. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006. 274 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 7.--Long-Term Tax-Exempt Private Activity Bonds, by Purpose of Bond and Type of Issue, 2003 and 2004 2003 All issues Purpose of bond Number (1) Total [1].................................................................. 4,062 104 28 d 22 30 134 645 12 3 d 106 0 5 d 5 291 5 728 55 d 434 1,493 d 8 Amount (2) 92,630 8,445 1,343 d 231 153 2,693 9,671 720 16 d 6,503 0 33 d 561 16,863 306 955 4,344 d 18,421 21,250 d 7 Percent of total amount (3) 100.0 9.1 1.5 d 0.3 0.2 2.9 10.4 0.8 [2] d 7.0 0 [2] d 0.6 18.2 0.3 1.0 4.7 d 19.9 22.9 d [2] New money issues Number (4) 2,721 58 15 d 13 18 94 486 4 3 d d 0 5 d 5 110 d 484 37 0 297 1,117 0 5 Amount (5) 45,633 5,588 292 d 97 113 1,445 6,190 175 16 d d 0 33 d 561 3,421 d 628 2,858 0 9,896 14,112 0 3 Percent of total amount (6) 100.0 12.3 0.6 d 0.2 0.3 3.2 13.6 0.4 [2] d d 0 0.1 d 1.2 7.5 d 1.4 6.3 0 21.7 30.9 0 [2] Refunding issues Number (7) 1,882 61 14 d 11 14 44 182 9 0 d d 0 0 0 0 257 d 256 39 d 239 676 d 3 Amount (8) 46,997 2,858 1,051 d 134 40 1,248 3,480 545 0 d d 0 0 0 0 13,441 d 327 1,486 d 8,689 7,673 d 4 Percent of total amount (9) 100.0 6.1 2.2 d 0.3 0.1 2.7 7.4 1.2 0 d d 0 0 0 0 28.6 d 0.7 3.2 d 18.5 16.3 d [2] Airport......................................................................... Docks and wharves.................................................... Mass commuting........................................................ Water.......................................................................... Sewage....................................................................... Solid waste disposal................................................... Residential rental........................................................ Local furnishing of electricity/gas................................ Local heating/cooling facilities.................................... Hazardous waste facilities.......................................... Tax Reform Act of 1986 transition property................ Enterprise zone.......................................................... New empowerment zone............................................ District of Columbia Enterprise Zone.......................... Liberty......................................................................... Mortgage.................................................................... Veterans' mortgage.................................................... Small issue................................................................. Student loan............................................................... Redevelopment.......................................................... Section 501(c)(3) hospital........................................... Other Section 501(c)(3).............................................. Nongovernmental output property.............................. Other bonds [3]........................................................... Footnotes at end of table. 275 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 7.--Long-Term Tax-Exempt Private Activity Bonds, by Purpose of Bond and Type of Issue, 2003 and 2004--Continued 2004 All issues Purpose of bond Number (10) Total [1]..................................................................... 3,549 71 25 0 24 19 111 637 11 0 0 93 d 5 d 8 269 3 531 42 d 380 1,349 d 11 Amount (11) 93,098 5,062 838 0 362 227 3,322 8,351 751 0 0 7,580 d 41 d 1,214 18,471 130 921 4,782 d 18,224 22,386 d 353 New money issues Percent of total Number amount (12) 100.0 5.4 0.9 0 0.4 0.2 3.6 9.0 0.8 0 0 8.1 d [2] d 1.3 19.8 0.1 1.0 5.1 d 19.6 24.1 d 0.4 (13) 2,544 37 13 0 10 9 67 477 3 0 0 d d 5 d 8 146 d 399 35 d 298 1,050 d 8 Amount (14) 47,877 2,507 287 0 156 64 1,355 5,551 77 0 0 d d 41 d 1,214 5,063 d 657 3,955 d 11,074 15,654 d 13 Refunding issues Amount (17) 45,221 2,555 551 0 206 163 1,966 2,799 674 0 0 d 0 0 0 0 13,408 d 264 827 d 7,229 7,027 d 339 42 12 0 14 10 52 173 9 0 0 d 0 0 0 0 223 d 147 24 d 176 555 d 4 Percent of total amount (18) 100.0 5.7 1.2 0 0.5 0.4 4.4 6.2 1.5 0 0 d 0 0 0 0 29.7 d 0.6 1.8 d 16.0 15.5 d 0.8 Percent of total Number amount (15) 100.0 5.2 0.6 0 0.3 0.1 2.8 11.6 0.2 0 0 d d 0.1 d 2.5 10.6 d 1.4 8.3 d 23.1 32.7 d [2] (16) 1,500 Airport............................................................................ Docks and wharves....................................................... Mass commuting........................................................... Water............................................................................. Sewage......................................................................... Solid waste disposal...................................................... Residential rental........................................................... Local furnishing of electricity/gas.................................. Local heating/cooling facilities....................................... Hazardous waste facilities............................................. Tax Reform Act of 1986 transition property................... Enterprise zone............................................................. New empowerment zone............................................... District of Columbia Enterprise Zone............................. Liberty............................................................................ Mortgage....................................................................... Veterans' mortgage....................................................... Small issue.................................................................... Student loan.................................................................. Redevelopment............................................................. Section 501(c)(3) hospital............................................. Other Section 501(c)(3)................................................. Nongovernmental output property................................. Other bonds [3].............................................................. d - Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals. [1] A given bond issue can include more than one purpose and can include both new money and refunding proceeds. Thus, the summation of number of issues by purpose or by type of issue will sometimes exceed the total number of issues. However, the money amounts are additive to the totals. [2] Less than 0.05. [3] For purposes of this table, "other bonds" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038 return. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006. 276 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 8.--Computation of Lendable Proceeds for Long-Term Tax-Exempt Private Activity Bonds, by Selected Purpose of Bond, 2003 and 2004 Allocation to reserve fund Number (7) 562 35 8 3 3 5 48 29 0 3 21 103 307 7 527 20 6 4 5 9 40 49 0 6 16 100 279 8 Amount (8) 1,276 334 10 1 1 22 24 63 0 1 15 416 384 7 1,201 148 10 1 1 12 14 95 0 2 30 489 387 10 Issue year Selected purpose of bond Entire issue price Bond issuance costs Credit enhancement Number (1) 2003 Total [1]................................... Airport........................................... Docks and wharves...................... Water............................................ Sewage........................................ Solid waste disposal..................... Residential rental.......................... Mortgage...................................... Veterans' mortgage...................... Small issue................................... Student loan................................. Section 501(c)(3) hospital............ Other Section 501(c)(3)................ All other bonds [3]........................ 2004 Total [1]................................... Airport........................................... Docks and wharves...................... Water............................................ Sewage........................................ Solid waste disposal..................... Residential rental.......................... Mortgage...................................... Veterans' mortgage...................... Small issue................................... Student loan................................. Section 501(c)(3) hospital............ Other Section 501(c)(3)................ All other bonds [3]........................ Footnotes at end of table. Amount (2) 92,630 8,445 1,343 231 153 2,693 9,671 16,863 306 955 4,344 18,421 21,250 7,953 93,098 5,062 838 362 227 3,322 8,351 18,471 130 921 4,782 18,224 22,386 10,024 Number (3) 2,086 93 17 d 20 91 145 43 d 171 26 303 1,173 26 1,874 60 17 16 d 67 125 43 d 162 26 302 1,047 d Amount (4) 609 83 5 d 2 23 26 13 d 10 15 170 248 12 581 45 6 3 d 22 23 20 d 9 18 172 239 d Number (5) 873 59 9 6 3 16 50 5 0 68 9 158 494 10 828 52 11 11 d 16 53 8 0 46 4 161 467 d Amount (6) 582 167 3 1 [2] 3 8 [2] 0 3 2 213 174 8 567 52 3 2 d 5 8 [2] 0 2 [2] 307 180 d 4,062 104 28 22 30 134 645 291 5 728 55 434 1,493 148 3,549 71 25 24 19 111 637 269 3 531 42 380 1,349 133 277 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 8.--Computation of Lendable Proceeds for Long-Term Tax-Exempt Private Activity Bonds, by Selected Purpose of Bond, 2003 and 2004--Continued Proceeds used to refund prior issues Number (11) 1,882 61 14 d 14 44 182 257 d 256 39 239 676 122 1,500 42 12 14 d 52 173 223 d 147 24 176 555 105 Amount (12) 46,146 2,680 1,050 d 39 1,217 3,458 13,394 d 327 1,480 8,216 6,894 7,049 44,406 2,483 540 204 d 1,957 2,796 13,354 d 263 822 6,739 6,517 8,540 Issue year Selected purpose of bond Total lendable proceeds Nonrefunding proceeds Number (9) 2003 Total [1]........................................ Airport............................................... Docks and wharves.......................... Water................................................ Sewage............................................. Solid waste disposal......................... Residential rental.............................. Mortgage........................................... Veterans' mortgage........................... Small issue....................................... Student loan...................................... Section 501(c)(3) hospital................. Other Section 501(c)(3).................... All other bonds [3]............................. 2004 Total [1]........................................ Airport............................................... Docks and wharves.......................... Water................................................ Sewage............................................. Solid waste disposal......................... Residential rental.............................. Mortgage........................................... Veterans' mortgage........................... Small issue....................................... Student loan...................................... Section 501(c)(3) hospital................. Other Section 501(c)(3).................... All other bonds [3]............................. 4,062 104 28 d 30 134 645 291 d 728 55 434 1,493 148 3,549 71 25 24 19 111 637 269 3 531 42 380 1,349 133 Amount (10) 90,162 7,862 1,325 d 150 2,646 9,612 16,786 d 942 4,312 17,623 20,444 7,926 90,747 4,817 818 356 223 3,282 8,306 18,354 130 907 4,734 17,255 21,579 9,986 Number (13) 2,795 62 15 d 18 96 490 116 d 485 37 307 1,165 28 2,637 41 16 12 d 68 478 152 d 400 35 312 1,109 34 Amount (14) 44,016 5,181 275 d 111 1,428 6,154 3,393 d 615 2,831 9,407 13,550 876 46,341 2,335 279 152 d 1,325 5,509 5,001 d 644 3,911 10,517 15,062 1,446 d - Data deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals. [1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the money amounts are additive to the totals. [2] Indicates an amount less than $500,000. [3] For purposes of this table, this category includes all issues for which a specific purpose either did not apply or was not clearly indicated on the Form 8038 return, as well as bonds for: mass commuting facilities, local furnishing of energy or gas, local district heating or cooling facilities, hazardous waste facilities, facilities issued under a transitional rule of the Tax Reform Act of 1986, qualified enterprise zone facility bonds, qualified empowerment zone facility bonds, District of Columbia Enterprise Zone facility bonds, Liberty bonds, redevelopment bonds, and nongovernmental output property bonds. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006. 278 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars] Table 9.--New Money Long-Term Tax-Exempt Private Activity Bonds, by Selected Purpose of Bond and Size of Entire Issue, 2003 and 2004 Size of entire issue Issue year Selected purpose of bond All issues Under $1,000,000 Number (3) 411 5 0 d 0 0 d 0 0 296 0 12 80 d 315 d d d 0 0 15 0 0 218 0 6 69 d Amount (4) 122 3 0 d 0 0 d 0 0 49 0 8 53 d 94 d d d 0 0 8 0 0 37 0 4 41 d $1,000,000 under $10,000,000 Number (5) 1,218 15 9 d 7 d 257 0 3 188 0 90 607 7 1,145 10 5 d 6 22 254 d 5 181 0 95 552 12 Amount (6) 5,160 68 37 d 24 d 1,506 0 17 580 0 362 2,333 28 5,108 28 21 d 29 105 1,525 d 30 620 0 406 2,287 37 Number (1) 2003 Total [1]............................................ Airport................................................... Docks and wharves.............................. Water.................................................... Sewage................................................. Solid waste disposal............................. Residential rental.................................. Liberty................................................... Mortgage.............................................. Small issue........................................... Student loan......................................... Section 501(c)(3) hospital..................... Other Section 501(c)(3)........................ All other bonds [2]................................. 2004 Total [1]............................................ Airport................................................... Docks and wharves.............................. Water.................................................... Sewage................................................. Solid waste disposal............................. Residential rental.................................. Liberty................................................... Mortgage.............................................. Small issue........................................... Student loan......................................... Section 501(c)(3) hospital..................... Other Section 501(c)(3)........................ All other bonds [2]................................. Footnotes at end of table. Amount (2) 45,633 5,588 292 97 113 1,445 6,190 561 3,421 628 2,858 9,896 14,112 431 47,877 2,507 287 156 64 1,355 5,551 1,214 5,063 657 3,955 11,074 15,654 339 2,721 58 15 13 18 94 486 5 110 484 37 297 1,117 25 2,544 37 13 10 9 67 477 8 146 399 35 298 1,050 24 279 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars] Table 9.--New Money Long-Term Tax-Exempt Private Activity Bonds, by Selected Purpose of Bond and Size of Entire Issue, 2003 and 2004--Continued Size of entire issue--continued Issue year Selected purpose of bond $10,000,000 under $50,000,000 Number (7) 2003 Total [1]............................................ Airport................................................... Docks and wharves.............................. Water.................................................... Sewage................................................. Solid waste disposal............................. Residential rental.................................. Liberty................................................... Mortgage.............................................. Small issue........................................... Student loan......................................... Section 501(c)(3) hospital..................... Other Section 501(c)(3)........................ All other bonds [2]................................. 2004 Total [1]............................................ Airport................................................... Docks and wharves.............................. Water.................................................... Sewage................................................. Solid waste disposal............................. Residential rental.................................. Liberty................................................... Mortgage.............................................. Small issue........................................... Student loan......................................... Section 501(c)(3) hospital..................... Other Section 501(c)(3)........................ All other bonds [2]................................. 796 12 d 4 11 52 202 d 55 0 10 106 354 8 773 10 4 6 3 39 196 d 72 0 4 101 349 d Amount (8) 14,428 256 d 68 89 909 3,525 d 885 0 226 2,230 5,993 137 13,651 259 60 139 35 743 3,138 d 1,219 0 110 1,943 5,888 d $50,000,000 under $100,000,000 Number (9) 165 7 d 0 0 4 15 d 29 0 12 39 53 4 165 d d 0 0 d 7 d 39 0 13 50 46 4 Amount (10) 8,666 401 d 0 0 259 985 d 937 0 651 1,938 3,104 228 8,886 d d 0 0 d 385 d 1,550 0 802 2,814 2,407 224 $100,000,000 or more Number (11) 131 19 d 0 0 d d d 23 0 15 50 23 d 146 13 d 0 0 d 5 3 30 0 18 46 34 0 Amount (12) 17,257 4,859 d 0 0 d d d 1,582 0 1,981 5,358 2,629 d 20,139 2,113 d 0 0 d 495 889 2,264 0 3,044 5,906 5,030 0 d - Data deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals. [1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the money amounts are additive to the totals. [2] For purposes of this table, this category includes all issues for which a specific purpose either did not apply or was not clearly indicated on the Form 8038 return, as well as bonds for: mass commuting facilities, local furnishing of energy or gas, local district heating or cooling facilities, hazardous waste facilities, facilities issued under a transitional rule of the Tax Reform Act of 1986, qualified enterprise zone facility bonds, qualified empowerment zone facility bonds, District of Columbia Enterprise Zone facility bonds, veterans' mortgage bonds, redevelopment bonds, and nongovernmental output property bonds. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006. 280 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 10.--New Money Long-Term Tax-Exempt Private Activity Bonds, by State of Issue and Selected Purpose of Bond, 2003 and 2004 Total [1] State of issue 2003 Number (1) 2,721 37 4 33 20 197 70 17 9 18 121 94 d 13 187 58 166 54 39 27 9 38 106 71 111 15 59 10 43 19 22 76 8 156 41 15 81 24 17 149 14 17 25 44 120 21 18 73 67 16 67 d d Amount (2) 45,633 210 99 578 137 4,252 775 746 151 560 2,512 1,508 d 118 2,103 1,298 476 169 732 473 298 838 2,116 1,050 1,004 134 955 268 134 411 391 1,438 163 3,796 974 126 1,395 274 643 1,907 346 541 127 932 3,623 513 286 1,518 1,013 200 1,008 d d 2004 Number (3) 2,544 28 5 34 16 200 64 18 6 17 88 88 d 6 122 61 146 67 29 38 12 56 87 60 93 18 74 12 37 13 15 55 15 179 36 9 80 28 23 152 20 25 20 35 115 13 16 53 71 15 64 5 d Amount (4) 47,877 150 165 744 257 5,859 1,214 287 189 360 1,626 2,008 d 131 2,023 1,340 303 300 487 613 141 1,150 1,671 1,114 954 308 854 193 234 587 343 1,039 329 4,748 1,189 121 2,003 286 844 2,110 357 917 170 1,106 2,418 220 466 1,175 1,209 264 1,040 101 d Selected purpose of bond Airports, docks, and wharves [2] 2003 Number (5) 73 0 d d 0 d 5 0 0 d 11 d 0 d d d 0 d 3 d 0 d d d 0 0 d 0 d d d 3 0 d d 0 d d d d 0 0 0 0 5 0 d 3 3 0 d 0 d Amount (6) 5,880 0 d d 0 d 156 0 0 d 585 d 0 d d d 0 d 391 d 0 d d d 0 0 d 0 d d d 183 0 d d 0 d d d d 0 0 0 0 1,595 0 d 70 450 0 d 0 d 2004 Number (7) 50 0 0 0 d 5 3 0 0 d 5 d 0 0 d d 0 0 0 d 0 0 0 0 0 d 0 d d d 0 0 d d d 0 0 d 0 d 0 0 d 0 5 0 0 3 3 0 d 0 0 Amount (8) 2,794 0 0 0 d 224 91 0 0 d 189 d 0 0 d d 0 0 0 d 0 0 0 0 0 d 0 d d d 0 0 d d d 0 0 d 0 d 0 0 d 0 223 0 0 15 208 0 d 0 0 All States............................. Alabama.................................... Alaska....................................... Arizona...................................... Arkansas................................... California................................... Colorado................................... Connecticut............................... Delaware................................... District of Columbia................... Florida....................................... Georgia..................................... Hawaii....................................... Idaho......................................... Illinois........................................ Indiana...................................... Iowa.......................................... Kansas...................................... Kentucky................................... Louisiana.................................. Maine........................................ Maryland................................... Massachusetts.......................... Michigan................................... Minnesota................................. Mississippi................................ Missouri.................................... Montana.................................... Nebraska.................................. Nevada..................................... New Hampshire........................ New Jersey............................... New Mexico.............................. New York.................................. North Carolina........................... North Dakota............................. Ohio.......................................... Oklahoma................................. Oregon...................................... Pennsylvania............................ Rhode Island............................. South Carolina.......................... South Dakota............................ Tennessee................................ Texas........................................ Utah.......................................... Vermont.................................... Virginia...................................... Washington............................... West Virginia............................. Wisconsin................................. Wyoming................................... U.S. Possessions [3]................. Footnotes at end of table. 281 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 10.--New Money Long-Term Tax-Exempt Private Activity Bonds, by State of Issue and Selected Purpose of Bond, 2003 and 2004--Continued Selected purpose of bond--Continued State of issue Water, sewage, and solid waste disposal [2] 2003 Number (9) 125 5 0 d d 14 d d d 0 5 d 0 d 5 7 0 d 10 d d 0 d d d d 0 0 d 0 d 0 0 d d 0 d 3 d d 0 5 0 d 22 d 0 6 d d d 0 d Amount (10) 1,655 10 0 d d 131 d d d 0 53 d 0 d 51 133 0 d 70 d d 0 d d d d 0 0 d 0 d 0 0 d d 0 d 85 d d 0 47 0 d 361 d 0 72 d d d 0 d 2004 Number (11) 86 d 0 0 d 9 d 0 0 0 6 4 0 0 d 3 0 d d d d d d d d d 0 0 0 d 0 4 0 d d 0 5 d 0 5 d d d 0 d 0 0 d d 0 0 0 d Amount (12) 1,575 d 0 0 d 78 d 0 0 0 143 41 0 0 d 215 0 d d d d d d d d d 0 0 0 d 0 45 0 d d 0 203 d 0 213 d d d 0 d 0 0 d d 0 0 0 d 2003 Number (13) 486 7 0 11 3 108 8 0 d 6 42 30 0 0 23 4 4 d 0 5 d 8 12 5 23 3 14 0 d 8 3 d 5 26 6 0 11 3 5 3 3 d 0 7 41 4 4 9 17 0 5 0 0 Amount (14) 6,190 48 0 124 16 1,348 89 0 d 73 487 349 0 0 170 30 20 d 0 114 d 133 260 161 179 26 121 0 d 73 21 d 33 926 44 0 158 18 31 37 49 d 0 46 491 27 13 113 136 0 40 0 0 Residential rental 2004 Number (15) 477 d 0 14 4 103 3 d 0 d 24 26 0 0 23 5 0 d d d 0 9 12 6 12 4 22 d 0 3 d d 8 44 5 d 11 3 8 d d 8 0 8 42 d d 6 24 d d 0 0 Amount (16) 5,551 d 0 108 21 1,055 31 d 0 d 276 388 0 0 287 45 0 d d d 0 106 218 115 128 24 163 d 0 51 d d 48 923 34 d 102 19 97 d d 54 0 47 489 d d 56 237 d d 0 0 All States............................. Alabama.................................... Alaska....................................... Arizona...................................... Arkansas................................... California................................... Colorado................................... Connecticut............................... Delaware................................... District of Columbia................... Florida....................................... Georgia..................................... Hawaii....................................... Idaho......................................... Illinois........................................ Indiana...................................... Iowa.......................................... Kansas...................................... Kentucky................................... Louisiana.................................. Maine........................................ Maryland................................... Massachusetts.......................... Michigan................................... Minnesota................................. Mississippi................................ Missouri.................................... Montana.................................... Nebraska.................................. Nevada..................................... New Hampshire........................ New Jersey............................... New Mexico.............................. New York.................................. North Carolina........................... North Dakota............................. Ohio.......................................... Oklahoma................................. Oregon...................................... Pennsylvania............................ Rhode Island............................. South Carolina.......................... South Dakota............................ Tennessee................................ Texas........................................ Utah.......................................... Vermont.................................... Virginia...................................... Washington............................... West Virginia............................. Wisconsin................................. Wyoming................................... U.S. Possessions [3]................. Footnotes at end of table. 282 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 10.--New Money Long-Term Tax-Exempt Private Activity Bonds, by State of Issue and Selected Purpose of Bond, 2003 and 2004--Continued Selected purpose of bond--Continued State of issue Mortgage 2003 Number (17) 110 d 0 d d 4 d d d d 4 d 0 4 4 3 3 6 0 6 0 d d 0 3 d 4 d d 0 3 d d d d d d 3 d d 0 d 3 3 6 9 d 0 d d 3 0 d Amount (18) 3,421 d 0 d d 272 d d d d 49 d 0 85 191 108 96 63 0 76 0 d d 0 143 d 108 d d 0 88 d d d d d d 36 d d 0 d 51 98 76 167 d 0 d d 108 0 d 2004 Number (19) 146 0 0 d d 3 d d d 0 4 d 0 4 d d 3 7 d 8 d 4 4 0 4 3 d 3 3 0 4 d d 3 3 d d 3 d 7 d d d d 10 8 3 d 5 3 3 d 0 Amount (20) 5,063 0 0 d d 511 d d d 0 39 d 0 120 d d 86 68 d 103 d 90 127 0 131 10 d 134 124 0 86 d d 284 106 d d 30 d 311 d d d d 304 109 93 d 64 85 144 d 0 2003 Number (21) 484 5 0 0 3 5 18 d 0 0 13 12 0 0 90 8 118 31 3 d 0 d 9 21 7 d 13 0 19 0 d 13 0 3 7 0 d 5 0 18 d d 15 d d 3 0 5 7 0 18 0 0 Amount (22) 628 11 0 0 8 15 9 d 0 0 37 37 0 0 50 28 23 24 8 d 0 d 29 66 7 d 14 0 6 0 d 34 0 12 24 0 d 13 0 32 d d 5 d d 9 0 18 17 0 51 0 0 Small issue 2004 Number (23) 399 7 0 0 0 9 16 0 0 d 8 9 0 d 36 5 100 37 d 4 3 d 10 d 5 d 19 0 12 d 0 9 0 8 4 d d 10 d 19 d 0 8 3 d 0 0 5 d 0 14 0 0 Amount (24) 657 16 0 0 0 33 13 0 0 d 36 40 0 d 40 13 28 22 d 13 14 d 35 d 9 d 26 0 5 d 0 23 0 27 16 d d 13 d 36 d 0 4 8 d 0 0 11 d 0 50 0 0 Section 501(c)(3) hospital 2003 Number (25) 297 7 d 4 4 11 9 0 d 0 16 12 0 d 14 10 7 d 3 0 d 0 14 12 7 d 5 4 5 4 d 18 0 14 8 d 24 d 4 19 d 3 d 3 11 d d 7 d 4 15 0 0 Amount (26) 9,896 73 d 71 31 986 212 0 d 0 922 478 0 d 309 659 75 d 119 0 d 0 356 256 154 d 416 13 20 107 d 560 0 356 327 d 636 d 375 413 d 270 d 60 393 d d 132 d 124 425 0 0 All States.................... Alabama.......................... Alaska.............................. Arizona............................ Arkansas......................... California......................... Colorado.......................... Connecticut..................... Delaware......................... District of Columbia......... Florida............................. Georgia............................ Hawaii.............................. Idaho............................... Illinois.............................. Indiana............................. Iowa................................. Kansas............................ Kentucky.......................... Louisiana......................... Maine............................... Maryland.......................... Massachusetts................ Michigan.......................... Minnesota........................ Mississippi....................... Missouri........................... Montana.......................... Nebraska......................... Nevada............................ New Hampshire............... New Jersey...................... New Mexico..................... New York......................... North Carolina................. North Dakota................... Ohio................................. Oklahoma........................ Oregon............................ Pennsylvania................... Rhode Island................... South Carolina................. South Dakota................... Tennessee....................... Texas............................... Utah................................. Vermont........................... Virginia............................ Washington..................... West Virginia................... Wisconsin........................ Wyoming......................... U.S. Possessions [3]....... Footnotes at end of table. 283 Tax-Exempt Bonds, 2003-2004 [Money amounts are in millions of dollars] Table 10.--New Money Long-Term Tax-Exempt Private Activity Bonds, by State of Issue and Selected Purpose of Bond, 2003 and 2004--Continued Section 501(c)(3) hospital--Continued 2004 Number (27) 298 3 d 5 4 9 4 8 d 0 9 11 d 0 9 4 4 4 5 4 d 8 14 11 6 d 5 d d d d 10 3 29 8 0 20 d 6 20 4 4 d 5 7 0 5 5 6 6 14 0 0 Amount (28) 11,074 30 d 313 21 616 551 76 d 0 359 275 d 0 657 155 20 76 207 115 d 190 280 202 280 d 81 d d d d 443 160 452 376 0 843 d 446 468 22 471 d 222 486 0 179 386 266 156 390 0 0 Selected purpose of bond--Continued Other section 501(c)(3) 2003 Number (29) 1,117 12 0 11 7 50 27 10 d 7 33 34 d 4 50 25 31 11 18 10 6 25 67 30 69 6 22 d 13 5 9 37 d 103 16 11 39 6 5 99 7 6 6 27 33 3 9 43 31 6 30 d 0 Amount (30) 14,112 36 0 188 33 1,327 184 509 d 120 379 607 d 5 809 199 256 20 60 168 123 444 1,229 199 503 63 219 d 84 84 151 304 d 1,122 284 18 551 68 68 798 168 88 71 238 433 8 58 1,114 198 16 316 d 0 2004 Number (31) 1,050 13 d 10 d 62 34 7 d 8 31 34 d d 52 38 34 15 17 14 5 32 45 22 64 3 24 4 16 d 6 28 d 81 10 5 37 7 6 94 11 9 7 15 33 0 7 30 28 d 32 0 d Amount (32) 15,654 81 d 179 d 3,163 321 103 d 53 579 704 d d 822 302 161 112 26 221 23 739 861 212 377 14 370 41 86 d 58 339 d 1,763 136 9 752 51 145 684 147 114 86 229 367 0 56 313 257 d 382 0 d All other bonds, combined [2] 2003 Number (33) 67 d 0 3 0 4 d d d d 0 d 0 0 d 0 3 0 d d d 0 d d d d 0 d 0 d d d 0 7 d 0 0 d 0 4 d d 0 d d d d 0 3 0 0 0 0 Amount (34) 3,850 d 0 104 0 150 d d d d 0 d 0 0 d 0 5 0 d d d 0 d d d d 0 d 0 d d d 0 689 d 0 0 d 0 275 d d 0 d d d d 0 100 0 0 0 0 2004 Number (35) 67 0 d d d d d 0 d d d 0 0 0 0 d 5 0 d d 0 0 d 3 d d d 0 0 d d d 0 9 d 0 0 d 0 3 d d 0 d 7 d d 0 d 0 0 d 0 Amount (36) 5,508 0 d d d d d 0 d d d 0 0 0 0 d 9 0 d d 0 0 d 526 d d d 0 0 d d d 0 1,231 d 0 0 d 0 341 d d 0 d 362 d d 0 d 0 0 d 0 State of issue All States.................... Alabama.......................... Alaska.............................. Arizona............................ Arkansas......................... California......................... Colorado.......................... Connecticut..................... Delaware......................... District of Columbia......... Florida............................. Georgia............................ Hawaii.............................. Idaho............................... Illinois.............................. Indiana............................. Iowa................................. Kansas............................ Kentucky.......................... Louisiana......................... Maine............................... Maryland.......................... Massachusetts................ Michigan.......................... Minnesota........................ Mississippi....................... Missouri........................... Montana.......................... Nebraska......................... Nevada............................ New Hampshire............... New Jersey...................... New Mexico..................... New York......................... North Carolina................. North Dakota................... Ohio................................. Oklahoma........................ Oregon............................ Pennsylvania................... Rhode Island................... South Carolina................. South Dakota................... Tennessee....................... Texas............................... Utah................................. Vermont........................... Virginia............................ Washington..................... West Virginia................... Wisconsin........................ Wyoming......................... U.S. Possessions [3]....... 284 d - Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals. [1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the money amounts are additive to the totals. [2] For purposes of this table, certain bond purposes were combined. For this reason, data in this table will differ slightly from the data in Table 7. The "all other bonds, combined" category here includes all issues for which a specific purpose either did not apply or was not clearly indicated on the Form 8038 return, as well as bonds for: local furnishing of energy or gas, local district heating or cooling facilities, hazardous waste facilities, facilities issued under a transitional rule of the Tax Reform Act of 1986, mass commuting facilities, qualified enterprise zone facility bonds, qualified empowerment zone facility bonds, District of Columbia Enterprise Zone facility bonds, Liberty bonds, veterans' mortgage bonds, student loan bonds, redevelopment bonds, and nongovernmental output property bonds. [3] U.S. Possessions include Puerto Rico, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands. NOTE: Detail may not add to totals because of rounding. SOURCE: IRS, Statistics of Income Division, September 2006.