§ 101031 Bond Proceeds Tax Exemption

Education Code·California

AI SummaryVerified

This law says that money earned from selling bonds is not treated as tax money, so the rules that limit how tax money can be used don’t apply to it.

Key Takeaways

•Bond money is not called “proceeds of taxes.”
•The limits that apply to tax money don’t apply to bond money.
•The law makes it clear that bond proceeds can be used freely under this rule.

Example

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

Because the cash comes from bonds, not from taxes, the city can spend it even if the state’s tax‑money limits would normally stop that spending.

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

Official Source

View on CA.gov

§ 101031 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. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)

Last verified: January 10, 2026

Key Terms

proceeds of taxes Article XIII B Proposition 1D

References

Official text at leginfo.legislature.ca.gov
California Legislature. Education Code. Section 101031.

Key Takeaways

Example

Key Terms

Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References