§ 100960 Bond Proceeds Tax Exemption

Education Code·California

AI SummaryVerified

This law says money raised by selling bonds isn’t counted as tax money, so the usual limits on how tax money can be spent don’t apply to it.

Key Takeaways

•Money from bond sales is not treated as tax revenue.
•State limits that apply to tax money don’t apply to bond money.
•Local governments can use bond proceeds for projects even when tax‑spending caps are reached.

Example

A city wants to build a new community center but its tax budget is already maxed out by state limits.

The city can sell bonds to raise cash for the center, and because that cash isn’t considered tax money, the state’s spending caps on tax revenue don’t stop the city from using it.

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

Official Source

View on CA.gov

§ 100960 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. 31. Approved in Proposition 55 at the March 2, 2004, election.)

Last verified: January 10, 2026

Key Terms

proceeds of taxes Article XIII B Proposition 55

References

Official text at leginfo.legislature.ca.gov
California Legislature. Education Code. Section 100960.

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Key Takeaways

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Key Terms

Related Statutes

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