§ 105261 District Bond Tax Exemption

This law says that any bonds or similar debt papers the district sells, and the interest they earn, are not subject to state taxes, except for a few specific taxes.

Key Takeaways

•Bonds issued by the district are exempt from most state taxes.
•The interest earned on those bonds is also tax‑free at the state level.
•Only transfer, franchise, inheritance, and estate taxes can still be charged.

Example

A city sells bonds to raise money for a new library. An investor buys a bond and later receives interest payments.

The investor does not have to pay state income tax on the interest from that bond, but if the bond is later transferred, inherited, or part of an estate, those specific taxes could still apply.

All bonds and other evidences of indebtedness issued by the district under the provisions of this part, and the interest thereon, are free and exempt from all taxation within the state, except for transfer, franchise, inheritance, and estate taxes. (Added by Stats. 2002, Ch. 341, Sec. 4. Effective January 1, 2003.)

This law says that any bonds or similar debt papers the district sells, and the interest they earn, are not subject to state taxes, except for a few specific taxes.

Key Takeaways

•Bonds issued by the district are exempt from most state taxes.
•The interest earned on those bonds is also tax‑free at the state level.
•Only transfer, franchise, inheritance, and estate taxes can still be charged.

Example

A city sells bonds to raise money for a new library. An investor buys a bond and later receives interest payments.

The investor does not have to pay state income tax on the interest from that bond, but if the bond is later transferred, inherited, or part of an estate, those specific taxes could still apply.

Key Takeaways

Example

Key Terms

References

§ 105261 District Bond Tax Exemption

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References