§ 100446 Bond Proceeds Tax Exemption

Education Code·California

AI SummaryVerified

This law says that money raised by selling certain bonds is not considered tax money, so the rules that limit how tax money can be spent don’t apply to it.

Key Takeaways

•Bond sale proceeds are not “proceeds of taxes.”
•Those proceeds are not bound by the spending limits in Article XIII B of the California Constitution.
•The money can be used for projects the bond authorizes without the tax‑money restrictions.

Example

A city sells bonds to raise cash for a new community center.

Because the cash comes from bond sales, not from taxes, the city can spend it on the center even though there are limits on how tax money can be used.

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

Official Source

View on CA.gov

§ 100446 Bond Proceeds 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. (Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)

Last verified: January 10, 2026

Key Terms

proceeds of taxes Article XIII B California Constitution Proposition 1A

References

Official text at leginfo.legislature.ca.gov
California Legislature. Education Code. Section 100446.

Key Takeaways

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Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References