§ 100560 Bond Proceeds Tax Exemption

Education Code·California

AI SummaryVerified

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

Key Takeaways

•Bond money is not considered "proceeds of taxes".
•The spending limits that apply to tax money do not apply to bond proceeds.
•This rule was added by Proposition 1A in 1998.

Example

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

Because the cash comes from bonds, not from taxes, the city can spend it even if the state’s tax‑spending limits would normally stop them.

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

Official Source

View on CA.gov

§ 100560 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 100560.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References