§ 16654 Bond Tax Exemption Compliance

Government Code·California

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Key Takeaways

•The state keeps special money records to follow federal tax rules for bonds.
•State agencies must give the Treasurer info about bond programs to keep them tax-free.
•This helps make sure people who own state bonds don’t pay extra federal taxes.

Example

If California sells bonds to build schools, the state must track the money carefully.

The state keeps records so the people who buy the bonds don’t have to pay federal taxes on the interest they earn.

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

Official Source

View on CA.gov

§ 16654 Bond Tax Exemption Compliance

The Controller shall establish and maintain accounts and perform accounting transactions as determined by the Treasurer to be necessary to comply with all provisions of federal law and regulations pertaining to retaining the bondholders’ exemption from federal income taxation on interest paid on state bonds. State agencies administering state bond programs shall provide the Treasurer with all program and fiscal information as determined by the Treasurer to be necessary to comply with these federal provisions. (Added by Stats. 1987, Ch. 6, Sec. 3. Effective March 23, 1987.)

Last verified: January 22, 2026

Key Terms

Controller Treasurer bondholders’ exemption federal income taxation state bonds state agencies program and fiscal information federal provisions

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 16654.

Key Takeaways

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Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References