§ 54030 Bond Sale Tax Exemption

Health and Safety Code·California

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Key Takeaways

•Money from selling bonds (like borrowing money) is not the same as tax money.
•This money can be spent without following the usual tax money spending rules.
•This rule was approved by voters in 2018.

Example

Imagine the government wants to build a new school but doesn’t have enough tax money right now.

They can borrow money by selling bonds (like an IOU) and spend it on the school without worrying about the normal rules for how tax money is spent.

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

Official Source

View on CA.gov

§ 54030 Bond Sale Tax Exemption

The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this part 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. 2017, Ch. 365, Sec. 3. Approved in Proposition 1 at the November 6, 2018, election; effective November 7, 2018.)

Last verified: January 24, 2026

Key Terms

tax money legislature fine constitution disbursement proposition election

References

Official text at leginfo.legislature.ca.gov
California Legislature. Health and Safety Code. Section 54030.

Key Takeaways

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Key Takeaways

Example

Key Terms

Related Statutes

References