The biggest tax regulatory issue for municipal market participants in 2016 is the issue price rules and what changes the Treasury Department and Internal Revenue Service will make as they finalize them, dealer and issuer group representatives said in interviews about the coming year.

The Treasury and IRS also are working to update and liberalize safe harbors in longer term management contracts so that the contracts do not create a significant amount of private use and payments that would make tax-exempt bonds taxable.

"I hope they will be able to turn to the management contract rules. I think that the White House still has a push for public-private partnerships" and these rules would help with that, said Linda Schakel, a partner at Ballard Spahr.

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