§ 101141 Bond Proceeds Tax Exemption

This law says that money the state gets from selling bonds is not counted as tax money, so the state can spend it without following the tax‑spending limits in the California Constitution.

Key Takeaways

•Bond sale proceeds are not considered "proceeds of taxes".
•Spending those proceeds is not limited by Article XIII B of the California Constitution.
•The rule applies to bonds that are authorized by the specific chapter mentioned in the law.

Example

California sells $200 million in bonds to fund a new school building.

Because the money comes from bond sales, not from taxes, the state can use the whole $200 million for the school even though the Constitution limits how much tax money can be spent on projects.

The people hereby find and declare 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 November 8, 2016, by initiative Proposition 51, Sec. 3.)

This law says that money the state gets from selling bonds is not counted as tax money, so the state can spend it without following the tax‑spending limits in the California Constitution.

Key Takeaways

•Bond sale proceeds are not considered "proceeds of taxes".
•Spending those proceeds is not limited by Article XIII B of the California Constitution.
•The rule applies to bonds that are authorized by the specific chapter mentioned in the law.

Example

California sells $200 million in bonds to fund a new school building.

Because the money comes from bond sales, not from taxes, the state can use the whole $200 million for the school even though the Constitution limits how much tax money can be spent on projects.

Key Takeaways

Example

Key Terms

References

§ 101141 Bond Proceeds Tax Exemption

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References