Small Issue Industrial Development Bond Reform Act of 1982

Small Issue Industrial Development Bond Reform Act of 1982 - Amends the Internal Revenue Code to disqualify industrial development bonds (IDBs) for the small issue tax exemption if more than 25 percent of the proceeds of such bonds are used to finance automobile sales and service facilities, restaurants, or entertainment or recreation facilities.

Requires bond issuing authorities to conduct public hearings prior to the approval and issuance of any small issue industrial development bond. Requires the Governor of a State to report to the Secretary of the Treasury annually beginning in 1984 on bonds issued during the preceding year. Requires that an elected official of the municipality approve bond issues.

Increases to $25,000,000 the amount of industrial development bonds used for economically distressed areas which qualify as tax-exempt small issues. Specifies requirements relating to average income, housing stock, out migration, and tax base for designation as a qualified distressed area.

Provides that research and experimental expenditures shall not be taken into account for purposes of determining the aggregate face value of industrial development bonds which otherwise qualify for the small issue exemption.

Excludes from gross income interest received on industrial development bonds used to finance a qualified Federal facility in an economically distressed area or an area eligible for urban development action grants.

Requires the Secretary of the Treasury to study and report to specified congressional committees on the use of small issue industrial development bonds and the operation of this Act.

Permits separate treatment of portions of certain issues if the separate face amount of each portion is determinable, for purposes of the restrictions on pooled issues contained in Revenue Ruling 81-216.

Sets forth effective dates for this Act.

Includes as an exempt activity, the acquisition of an existing air or water pollution control facility with the proceeds of an obligation issued by a qualified regional pollution control authority.