By Elsa Maxey
According to a section of the Internal Revenue Code of 1986, a corporation wishing to refinance bonds for a hospital system that has a facility in Sugar Land needs to get permission in the form of a resolution from Fort Bend County for a tax exemption.
Last week, Fort Bend County Commissioners Court approved the resolution allowing bonds with a maximum amount of $600 million to be issued by the Harris County Cultural Education Facilities Finance Corporation. This will in turn allow for the refinancing of bond for about 12 facilities of the Memorial Hermann Health System, a Texas non-profit corporation as the borrower, including equipment for Memorial Hermann Sugar Land Hospital in Fort Bend County. This hospital in Fort Bend County’s jurisdiction is an 81-bed acute care facility at 17500 West Grand Parkway.
There will be no financial obligation on the part of the county with respect to the bond reissuance made by the corporation working in concert with the hospital system. The approval sought is for exempting the interest on the bonds from federal income taxes. The projects for the hospital facilities will be refinanced at lower or more favorable interest rates, which according to background information, is borne by tax-exempt obligations. Passage and approval of the resolution is intended to serve a public purpose.
Other counties impacted by this resolution request include Harris and Montgomery counties.