§ 101431 Bond Proceeds Tax Exemption

Education Code·California

AI SummaryVerified

This law says that money from selling bonds is not 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 treated differently from tax money.
•State constitutional limits on tax proceeds do not restrict bond proceeds.
•Local governments can use bond money for projects without those tax‑spending rules.

Example

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

Because the cash comes from bonds, not taxes, the city can spend it on the library without having to follow the tax‑spending limits in the state constitution.

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

Official Source

View on CA.gov

§ 101431 Bond Proceeds Tax Exemption

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, and the disbursement of these proceeds is not subject to the limitations imposed by that article. (Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)

Last verified: January 10, 2026

Key Terms

proceeds of taxes Article XIII B California Constitution Proposition 2

References

Official text at leginfo.legislature.ca.gov
California Legislature. Education Code. Section 101431.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References