§ 100646 Bond Proceeds Tax Exemption

Education Code·California

AI SummaryVerified

This law says money that comes from selling bonds is not counted as tax money, so the limits that apply to tax money don’t apply to it.

Key Takeaways

•Bond money is treated differently from tax money.
•The spending limits for tax revenues do not apply to bond proceeds.
•Local governments can use bond money for projects without worrying about the tax‑revenue caps.

Example

A city wants to build a new library and decides to raise money by selling bonds.

Because the money comes from bonds, not taxes, the city can spend it on the library even though there are rules that limit how much tax money can be used for projects.

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

Official Source

View on CA.gov

§ 100646 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. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)

Last verified: January 10, 2026

Key Terms

proceeds of taxes Article XIII B California Constitution Proposition 47

References

Official text at leginfo.legislature.ca.gov
California Legislature. Education Code. Section 100646.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References