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is not available for use by the general public (within
the meaning of paragraph (c) of this section), private
business use may be established solely on the basis of
a special economic benefit to one or more
nongovernmental persons, even if those nongovernmental
persons have no special legal entitlements to use of
the property. In determining whether special economic
benefit gives rise to private business use it is
necessary to consider all of the facts and
circumstances, including one or more of the following
factors--
(A) Whether the financed property is
functionally related or physically proximate to
property used in the trade or business of a
nongovernmental person;
(B) Whether only a small number of
nongovernmental persons receive the special
economic benefit; and
(C) Whether the cost of the financed
property is treated as depreciable by any
nongovernmental person.
Respondent contends that this special rule is met in this case
because “the Pipeline Project is not available for use on the
same basis by persons not engaged in a trade or business. Treas.
Reg. � 1.141-3(c)(1).” We disagree.
The pipeline is available for use by members of the general
public. The pipeline is an integral part of petitioner’s sewage
system. The sewage ratepayers use the sewage system, including
the pipeline, as members of the general public. They use that
system to dispose of their sewage, and they pay what the record
reflects to be uniform and standardized rates set by ordinance.
There are no specially negotiated rate arrangements, and all
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