§ 100846 Bond Proceeds Tax Exemption

This law says money raised by selling bonds under this chapter is not counted as tax money, so the usual limits on spending tax money don't apply to it.

Key Takeaways

•Bond sale proceeds are not considered "proceeds of taxes".
•Spending bond money is not limited by the tax‑revenue caps in Article XIII B.
•Projects can be funded with bond money even when tax‑spending limits exist.

Example

A city sells bonds to build a new community center. Because the money comes from bonds, not taxes, the city can spend it even if tax‑spending limits would normally stop the project.

The bond money is treated differently from tax money, so the city doesn't have to follow the tax‑spending caps when using the bond proceeds for the center.

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. 2002, Ch. 33, Sec. 31. Approved in Proposition 55 at the March 2, 2004, election.)

This law says money raised by selling bonds under this chapter is not counted as tax money, so the usual limits on spending tax money don't apply to it.

Key Takeaways

•Bond sale proceeds are not considered "proceeds of taxes".
•Spending bond money is not limited by the tax‑revenue caps in Article XIII B.
•Projects can be funded with bond money even when tax‑spending limits exist.

Example

A city sells bonds to build a new community center. Because the money comes from bonds, not taxes, the city can spend it even if tax‑spending limits would normally stop the project.

The bond money is treated differently from tax money, so the city doesn't have to follow the tax‑spending caps when using the bond proceeds for the center.

Key Takeaways

Example

Key Terms

References

§ 100846 Bond Proceeds Tax Exemption

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References