§ 30982 Bond Tax Exemption Rules

Public Utilities Code·California

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Key Takeaways

•Money borrowed by the district (like bonds) and the interest on it don't get taxed in California.
•This rule doesn't apply to some taxes like transfer, franchise, inheritance, and estate taxes.
•This law was added in 1964.

Example

A school district borrows money by selling bonds to build a new school.

The district doesn't have to pay most California taxes on the money it borrowed or the interest it pays back. But if someone inherits those bonds, they might have to pay inheritance tax.

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Official Source

View on CA.gov

§ 30982 Bond Tax Exemption Rules

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 of California, except for transfer, franchise, inheritance and estate taxes. (Added by Stats. 1964, 1st Ex. Sess., Ch. 62.)

Last verified: January 23, 2026

Key Terms

bonds evidences of indebtedness exempt from all taxation State of California transfer, franchise, inheritance and estate taxes

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 30982.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References