§ 100180 Bond Proceeds Tax Exemption

Education Code·California

AI SummaryVerified

This law says money raised by selling bonds isn’t counted as tax money, so the rules that limit how tax money can be used don’t apply to it.

Key Takeaways

•Bond sale money is not considered "proceeds of taxes".
•The limits in Article XIII B that apply to tax money do not apply to bond money.
•The state can use bond proceeds for projects without worrying about those tax‑money restrictions.

Example

A city sells bonds to raise cash for building a new library.

Because the cash comes from bond sales, not from taxes, the city can spend it on the library even though there are rules that would normally restrict how tax money can be used.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 100180 Bond Proceeds Tax Exemption

The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. (Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)

Last verified: January 10, 2026

Key Terms

proceeds of taxes Article XIII B Proposition 203

References

Official text at leginfo.legislature.ca.gov
California Legislature. Education Code. Section 100180.

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Key Takeaways

Example

Key Terms

Related Statutes

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