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Revenue Ruling

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 Rev. Rul. 55-76

1955-1 C.B. 239

Sec. 103

Full Text

Rev. Rul. 55-76

The Maine Turnpike Authority is a body corporate and politic created by an act of the Legislature of the State of Maine, Chapter 69 of the Private and Special Laws of 1941. Pursuant to the above Act, as subsequently amended, the Authority is authorized and empowered to construct, maintain and operate, in integral operating units, a turnpike, together with all connecting tunnels, bridges, approaches, overpasses and underpasses necessary to provide an all-weather highway between the southwestern and northeastern sections of the State of Maine, and to issue turnpike revenue bonds, payable solely from tolls, to pay the cost of such construction. The Authority is also empowered to acquire by purchase, or by condemnation, in order to insure immediate possession, such lands, rights, easements, franchises and other property as it may deem necessary to the construction of the turnpike. Held , the Maine Turnpike Authority is a political subdivision within the meaning of section 22(b)(4) of the Internal Revenue Code of 1939. Accordingly, interest on 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; Commissioner v. Estate of Caroline White , 144 Fed.(2d) 1019, Ct. D. 1647, C.B. 1945, 65, certiorari denied, 323 U.S. 792