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HomeElections CodeDiv. 19Ch. 3Art. 5§ 19266 Bond Proceeds Tax Exemption

§ 19266 Bond Proceeds Tax Exemption

Elections Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 19266 Bond Proceeds Tax Exemption

This law says that money raised by selling bonds is not treated like tax money, so the usual limits on how tax money can be spent don't apply to it.

Key Takeaways

  • •Bond money is not considered "proceeds of taxes".
  • •Spending bond money is not limited by the tax‑spending rules in Article XIII B.
  • •The rule applies to any bonds that are authorized by this specific article.

Example

A city wants to build a new community center and decides to raise money by selling bonds instead of raising taxes.

Because the money comes from bonds, the city can spend it on the community center even though there are rules that would limit how much tax money it could use for the project.

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

Official Source
View on CA.gov

§ 19266 Bond Proceeds Tax Exemption

The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this article 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 Article XIII B. (Added by renumbering Section 19245 by Stats. 2013, Ch. 602, Sec. 64. (SB 360) Effective January 1, 2014. Note: This section (as originally numbered) was added by Stats. 2001, Ch. 902, and approved in Prop. 41 on March 5, 2002.)

Last verified: January 10, 2026

Key Terms

proceeds of taxesArticle XIII BCalifornia Constitutionbonds

Related Statutes

  • § 19251 Bond Issuance State Law
  • § 19258 Bond Payment Appropriation
  • § 19261 Bond Issuance For Projects
  • § 19262 Bond Sale Authorization Rules
  • § 19264 Bond Refunding Authorization

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Elections Code. Section 19266.
View Official Source