Demand Deposit Securities of the State and Local Government Series (SLGS); Average Marginal Tax Rate and Treasury Administrative Cost, 37918 [05-12867]
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37918
Federal Register / Vol. 70, No. 125 / Thursday, June 30, 2005 / Notices
DEPARTMENT OF THE TREASURY
Fiscal Service
Demand Deposit Securities of the State
and Local Government Series (SLGS);
Average Marginal Tax Rate and
Treasury Administrative Cost
Bureau of the Public Debt,
Fiscal Service, Treasury.
ACTION: Notice of estimated average
marginal tax rate and Treasury
administrative cost for Demand Deposit
certificates of indebtedness—State and
Local Government Series.
AGENCY:
SUMMARY: This notice is being published
to provide the information necessary to
apply the interest rate formula for
Demand Deposit certificates of
indebtedness—State and Local
Government Series (SLGS) (31 CFR Part
344, Subpart C). The factor necessary to
convert the interest rate to a tax-exempt
equivalent (1—the estimated average
marginal tax rate of purchasers of taxexempt bonds) is 1–.21 or .79.
The current Treasury administrative
cost is five basis points. Treasury is
amending this rate and designating the
new Treasury administrative cost, as of
the effective date of this notice, as one
basis point.
VerDate jul<14>2003
16:43 Jun 29, 2005
Jkt 205001
The final rule, amending the
regulations governing SLGS securities,
which appears elsewhere in this issue of
the Federal Register, makes provision
for the simultaneous publication of this
notice (31 CFR 344.7).
EFFECTIVE DATE: This notice is effective
August 15, 2005.
FOR FURTHER INFORMATION CONTACT:
Keith Rake, Deputy Assistant
Commissioner, Office of the Assistant
Commissioner for Public Debt
Accounting, Bureau of the Public Debt,
200 3rd St., P.O. Box 396, Parkersburg,
WV 26106–0396, (304) 480–5101 (not a
toll-free number), or by e-mail at opdasib@bpd.treas.gov or Edward Gronseth,
Deputy Chief Counsel, Elizabeth Spears,
Senior Attorney, or Brian Metz,
Attorney-Adviser, Office of the Chief
Counsel, Bureau of the Public Debt,
Department of the Treasury, P.O. Box
1328, Parkersburg, WV 26106–1328,
(304) 480–8692 (not a toll-free number).
SUPPLEMENTARY INFORMATION: The
Department of the Treasury, under the
authority of 26 U.S.C. 141 note; 31
U.S.C. 3102–3104 and 3121, offers SLGS
Demand Deposit certificates of
indebtedness. These securities are oneday certificates of indebtedness, issued
in a minimum amount of $1,000, or in
PO 00000
Frm 00001
Fmt 4701
Sfmt 4703
any larger amount, with interest accrued
and added to the principal daily. In the
final rule published simultaneously
with this notice, provision is made to
provide by notice the information
necessary to apply the interest rate
formula to the Demand Deposit
certificates of indebtedness, i.e., the
average yield for three-month Treasury
bills at the most recent auction,
multiplied by one minus the estimated
average marginal tax rate (1–MTR) of
purchasers of tax-exempt bonds, less the
Treasury administrative cost. The factor
‘‘1–MTR’’ is .79.
The current Treasury administrative
cost is five basis points. Treasury is
amending this rate and designating the
new Treasury administrative cost, as of
the effective date of this notice, as one
basis point.
Both the ‘‘1–MTR’’ and the Treasury
administrative cost are subject to
redetermination by the Department of
the Treasury. Any future changes will
be published by notice in the Federal
Register.
Donald V. Hammond,
Fiscal Assistant Secretary.
[FR Doc. 05–12867 Filed 6–29–05; 8:45 am]
BILLING CODE 4810–39–P
E:\FR\FM\30JNN2.SGM
30JNN2
Agencies
[Federal Register Volume 70, Number 125 (Thursday, June 30, 2005)]
[Notices]
[Page 37918]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-12867]
Federal Register / Vol. 70, No. 125 / Thursday, June 30, 2005 /
Notices
[[Page 37918]]
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DEPARTMENT OF THE TREASURY
Fiscal Service
Demand Deposit Securities of the State and Local Government
Series (SLGS); Average Marginal Tax Rate and Treasury Administrative
Cost
AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.
ACTION: Notice of estimated average marginal tax rate and Treasury
administrative cost for Demand Deposit certificates of indebtedness--
State and Local Government Series.
-----------------------------------------------------------------------
SUMMARY: This notice is being published to provide the information
necessary to apply the interest rate formula for Demand Deposit
certificates of indebtedness--State and Local Government Series (SLGS)
(31 CFR Part 344, Subpart C). The factor necessary to convert the
interest rate to a tax-exempt equivalent (1--the estimated average
marginal tax rate of purchasers of tax-exempt bonds) is 1-.21 or .79.
The current Treasury administrative cost is five basis points.
Treasury is amending this rate and designating the new Treasury
administrative cost, as of the effective date of this notice, as one
basis point.
The final rule, amending the regulations governing SLGS securities,
which appears elsewhere in this issue of the Federal Register, makes
provision for the simultaneous publication of this notice (31 CFR
344.7).
EFFECTIVE DATE: This notice is effective August 15, 2005.
FOR FURTHER INFORMATION CONTACT: Keith Rake, Deputy Assistant
Commissioner, Office of the Assistant Commissioner for Public Debt
Accounting, Bureau of the Public Debt, 200 3rd St., P.O. Box 396,
Parkersburg, WV 26106-0396, (304) 480-5101 (not a toll-free number), or
by e-mail at opda-sib@bpd.treas.gov or Edward Gronseth, Deputy Chief
Counsel, Elizabeth Spears, Senior Attorney, or Brian Metz, Attorney-
Adviser, Office of the Chief Counsel, Bureau of the Public Debt,
Department of the Treasury, P.O. Box 1328, Parkersburg, WV 26106-1328,
(304) 480-8692 (not a toll-free number).
SUPPLEMENTARY INFORMATION: The Department of the Treasury, under the
authority of 26 U.S.C. 141 note; 31 U.S.C. 3102-3104 and 3121, offers
SLGS Demand Deposit certificates of indebtedness. These securities are
one-day certificates of indebtedness, issued in a minimum amount of
$1,000, or in any larger amount, with interest accrued and added to the
principal daily. In the final rule published simultaneously with this
notice, provision is made to provide by notice the information
necessary to apply the interest rate formula to the Demand Deposit
certificates of indebtedness, i.e., the average yield for three-month
Treasury bills at the most recent auction, multiplied by one minus the
estimated average marginal tax rate (1-MTR) of purchasers of tax-exempt
bonds, less the Treasury administrative cost. The factor ``1-MTR'' is
.79.
The current Treasury administrative cost is five basis points.
Treasury is amending this rate and designating the new Treasury
administrative cost, as of the effective date of this notice, as one
basis point.
Both the ``1-MTR'' and the Treasury administrative cost are subject
to redetermination by the Department of the Treasury. Any future
changes will be published by notice in the Federal Register.
Donald V. Hammond,
Fiscal Assistant Secretary.
[FR Doc. 05-12867 Filed 6-29-05; 8:45 am]
BILLING CODE 4810-39-P