Under the provision of the Federal Tax Reform Act of 1986, each state is provided a unified volume limitation or cap covering certain tax-exempt bonds, known as private activity bonds. In order to fairly allocate this limited source of authority to fund certain governmental activities on a maximum utilization, the Commissioner will prepare a yearly allocation plan which meets the following goals:

1. (1) Provides equal access to the state bond authority for large cities, small towns and rural areas; and
2. (2) Provides the most benefit to the state from the bond authority available to it.

Authority: T.C.A. §§9—20—102, 9—20—103, 9—20—104. Administrative History: Original rule filed October 28, 1988; effective January 29, 1989.