§ 102601 Bonds Tax Exemption

This law says that bonds and other debt papers the district sells, plus the interest they earn, are not taxed by California, except for a few specific taxes.

Key Takeaways

•Bonds issued by the district are not subject to California state taxes.
•The interest earned on those bonds is also tax‑free in California.
•Only transfer, franchise, inheritance, and estate taxes can still apply.

Example

A city sells a bond to raise money for a new park, and a local investor buys it.

The investor does not have to pay California state income tax on the interest they receive, but if they later sell the bond they might have to pay a transfer tax, and the bond could be subject to inheritance or estate taxes if it’s passed on after death.

All bonds and other evidences of indebtedness issued by the district under the provisions of this part, and the interest thereon are free and exempt from all taxation within the State of California, except for transfer, franchise, inheritance and estate taxes. (Added by Stats. 1971, Ch. 1374.)

This law says that bonds and other debt papers the district sells, plus the interest they earn, are not taxed by California, except for a few specific taxes.

Key Takeaways

•Bonds issued by the district are not subject to California state taxes.
•The interest earned on those bonds is also tax‑free in California.
•Only transfer, franchise, inheritance, and estate taxes can still apply.

Example

A city sells a bond to raise money for a new park, and a local investor buys it.

Key Takeaways

Example

Key Terms

References

§ 102601 Bonds Tax Exemption

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References