Tax-Exempt Leasing
Municipalities across the nation, large and small, often face difficulty in meeting their capital equipment and facility needs. Tax-exempt lease purchase financing is a technique that allows a municipality to purchase equipment and make periodic lease payments over the useful life of the asset. The payments under a lease arrangement are subject to the annual budgetary process and are included as a line item in the operating budget. This results in yearly obligation, thus eliminating the need for a referendum to approve long-term debt. If structured properly, the interest portion of the lease payments is exempt from federal income tax resulting in a low tax-exempt interest rate to the borrower.
Who is eligible to utilize Tax-Exempt Leasing?
Any municipality or political subdivision that can use tax-exempt securities can utilize tax-exempt leasing; i.e., States, Counties, Cities, Towns, School Districts, Fire Districts, Water Districts and More....
Advantages of Tax-Exempt Leasing
- Lower Interest Rates - Each financing is structured to meet IRS requirements for tax-exempt interest. These rates will be much lower than traditional commercial rates.
- Flexible Options - The Tax-Exempt Lease allows participants to select between monthly, quarterly, semi-annual or annual repayment frequencies.
- Responsiveness - When you need financing, funds can be available for disbursement in 2 to 3 weeks.
- Flexible Terms - Financing terms are tied to the estimated useful life of the property.
- No Voter Approval Required - No red tape by eliminating the need for voter approval.
- Individual Credit Decisions - Our program considers the merits and credit rating of each applicant.
- $1.00 Purchase Option at Maturity - Buy-out option is available at each payment period.
What can be financed?
Additional services we provide to assist you
- Structuring of each issuance to meet your individual needs.
- Coordination of all closing documentation and filing requirements.
- Providing current interest rate quotations to facilitate the budgetary process.
- Expertise in structuring escrow agreements to provide for incremental disbursements for transactions requiring longer installation periods or multiple vendor participation.
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Corporate Offices
Computer Consulting Partners, Ltd, 8390 E. Via De Ventura Suite F-110 , Scottsdale, AZ 85258
Phone: (480) 778-0122, Toll-Free: (800) 665-0959, Fax: (480) 607-5556, E-mail: Info@ccpartnersltd.com- Copyright 2002 Computer Consulting Partners, Ltd.