Internal Revenue Service
Revenue Ruling

TaxLinks.com   sm

 Rev. Rul. 55-75

1955-1 C.B. 238

Sec. 103

Full Text

Rev. Rul. 55-75

The Mackinac Bridge Authority, Lansing, Michigan, was created as a body corporate and an agency and instrumentality of the State of Michigan by Act No. 21 of the Public Acts of 1950. By Act No. 214 of the Public Acts of 1952, as amended by Act No. 141 of the Public Acts of 1953, the Authority is authorized and empowered to construct and operate a bridge extending from the Upper Peninsula to the Lower Peninsula of Michigan, with the necessary facilities appurtenant thereto. The Authority is empowered to issue revenue bonds, payable solely from revenues derived from ownership and operation of the bridge, and to fix, revise, impose and collect tolls, fees, rents and charges and to enter into contracts for the use of the bridge services and facilities so as to make such revenues generally sufficient at all times to pay all operating, repair and maintenance expenses except to the extent that such expenses may be in whole or in part cared for by the State Highway Department, to pay principal and interest on the bonds. Held , the Mackinac Bridge Authority of Lansing, Michigan, is a political subdivision within the meaning of section 22(b)(4) of the Internal Revenue Code of 1939. Accordingly, interest on the bonds issued by such Authority is exempt from Federal income tax. See Commissioner v. Estate of Alexander J. Shamberg , 144 Fed.(2d) 998, Ct. D. 1648, C.B. 1945, 335, certiorari denied, 323 U.S. 792; and Commissioner v. Estate of Caroline White , 144 Fed.(2d) 1019, Ct. D. 1647, C.B. 1945, 65, certiorari denied, 323 U.S. 792