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* This opinion supplements our previously filed Memorandum
Findings of Fact and Opinion in Hernandez v. Commissioner, T.C.
Memo. 1998-46, filed Feb. 5, 1998.
gross income under sec. 1.103-1(b), Income Tax Regs.,
which states: "Certificates issued by a political
subdivision for public improvements * * * which are
evidence of special assessments * * * and which the
political subdivision is required to enforce, are, for
purposes of this section, obligations of the political
subdivision".
Held: The language at issue in sec. 1.103-1(b),
Income Tax Regs., is restricted to special assessment
obligations that are issued by a State or political
subdivision in exercise of its sovereign borrowing
power to finance public improvements. The tax
certificates in this case are issued by a State or
political subdivision as a means of collecting
delinquent taxes in the exercise and enforcement of its
taxing power, not as a means of raising capital to
finance public improvements. Accordingly, sec. 1.103-
1(b), Income Tax Regs., does not apply.
John R. Hernandez, pro se.
Charles Baer, for respondent.
SUPPLEMENTAL MEMORANDUM OPINION
BEGHE, Judge: This matter is before us on petitioner's
motion under Rule 1611 for reconsideration of our opinion in
Hernandez v. Commissioner, T.C. Memo. 1998-46 (Hernandez I).
Hernandez I held that tax certificates sold by the Pasco County,
1 All section references are to the Internal Revenue Code in
effect for the years in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure, unless otherwise
indicated.
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