Bonds exempt from federal income, state income, or state tax and local personal property taxes. This tax exemption results from the theory of reciprocal immunity: States do not tax instruments of the federal government and the federal government does not tax interest of securities of state and local governments.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). tax-exempt bond. Retrieved September 23, 2026, from http://smartdefine.org/tax-exempt_bond/definitions/1164950 |
| Chicago | Barry Goldsmith. 2010. "tax-exempt bond" http://smartdefine.org/tax-exempt_bond/definitions/1164950 (accessed September 23, 2026). |
| Harvard | Barry Goldsmith 2010, tax-exempt bond, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/tax-exempt_bond/definitions/1164950>. |
| MLA | Barry Goldsmith. "tax-exempt bond" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/tax-exempt_bond/definitions/1164950> |