Association of Government Leasing and Finance Position on "SILO" 

 "The Association for Governmental Leasing and Finance respectfully submits the following statement in response as it relates to the AGL&F and the impact on its membership: 

 "While the current budget proposal, which purports to be designed to "stop abusive leasing transactions with tax-indifferent parties," certainly could have a significant adverse impact on operating leases between lessors and tax-exempt entities, the focus of the Association for Governmental Leasing and Finance is primarily related to traditional tax-exempt municipal and 501(c)(3) lease purchase transactions. 

 "In these transactions municipal entities, or 501(c)(3) entities through municipal entities, enter into lease-purchase agreements with vendors or other financing sources in order to acquire or construct real or personal property for use by the municipal entity or 501(c)(3) entity. Typically these transactions are treated as "sales" rather than leases for federal income tax purposes. Accordingly, these traditional tax-exempt municipal and 501(c)(3) lease-purchase transactions would not appear to be affected by the current 
 budget proposal." 

 "FOR FURTHER INFORMATION, PLEASE CONTACT 
 GRAHAM HAUCK, EXECUTIVE DIRECTOR: 202.742.2453 
 1222 Twenty-Third Street, NW o Suite 200 o Washington, DC 20037-1174 o (202) 742-AGLF (2453) o FAX (202) 833-3636 
 EMAIL: info@aglf.org o INTERNET: www.aglf.org"