In a rebuke to the crony capitalist policies of Scottsdale mayor Jim Lane and the so-called “Republicans” on the city council (including former city treasurer David Smith), the IRS has ruled that bonds issued by the city to pay off a parking garage at Fashion Square Mall are not eligible for the tax exempt status under which they were issued and sold.
Presumably the city is liable to somehow compensate bond purchasers. Even though the city staff and elected officials will ultimately blame the “bond counsel” attorneys, the tab for this ill-advised borrowing-to-benefit-friends is going to be paid by you, the taxpayers.