§ 19980 Bond Sale Tax Exemption

Education Code·California

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Key Takeaways

•Money from selling bonds (like borrowing money) is not the same as tax money.
•The rules about how tax money can be spent don’t apply to this bond money.
•This law helps the government use bond money more freely for projects.

Example

The government sells bonds to build new schools.

The money from selling those bonds doesn’t have to follow the strict spending rules that tax money does. So, they can use it more easily for the schools.

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Official Source

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§ 19980 Bond Sale 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. (Amended by Stats. 2006, Ch. 538, Sec. 96. Effective January 1, 2007. Note: This section was added by Stats. 1988, Ch. 49, and approved in Prop. 85 on Nov. 8, 1988.)

Last verified: January 23, 2026

Key Terms

proceeds of taxes Article XIII B California Constitution

References

Official text at leginfo.legislature.ca.gov
California Legislature. Education Code. Section 19980.

Key Takeaways

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References

Key Takeaways

Example

Key Terms

Related Statutes

References