DALLAS -- In a surprising move, the Oklahoma City school district board Friday unanimously voted not to pay more than $1 million in arbitrage profits, penalties, and interest to the Internal Revenue Service for its participation in a cash management scheme.

The move could mean that holders of $30 million in tax-exempt bonds issued in the 1990-91 program could now be taxed under IRS regulations and the IRS could blacklist the school district by revoking its ability to certify some other bond issues as tax-exempt in the future.

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