§ 1117 Bond Proceeds Tax Exemption

Military and Veterans Code·California

AI SummaryVerified

This law says that money raised by selling bonds is not treated like tax money, so the rules that limit how tax money can be used don’t apply to it.

Key Takeaways

•Bond money is separate from tax money.
•Spending bond proceeds isn’t limited by the tax‑money rules in the state constitution.
•The rule only applies to bonds that this chapter allows.

Example

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

Because the money comes from bonds, not from taxes, the city can spend it on the center even if there are limits on how much tax money it could normally use for projects.

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

Official Source

View on CA.gov

§ 1117 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. 1999, Ch. 728, Sec. 2. Approved in Proposition 16 at the March 7, 2000, election.)

Last verified: January 11, 2026

Key Terms

proceeds of taxes Article XIII B California Constitution Proposition 16

References

Official text at leginfo.legislature.ca.gov
California Legislature. Military and Veterans Code. Section 1117.

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Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References