2015 Indiana Code TITLE 6. TAXATION ARTICLE 8. MISCELLANEOUS CHAPTER 5. EXEMPTION OF PROCEEDS AND INTEREST ON MUNICIPAL BONDS FROM ALL TAXES
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IC 6-8-5
Chapter 5. Exemption of Proceeds and Interest on Municipal
Bonds From All Taxes
IC 6-8-5-1
Qualifying bonds, notes, warrants, or other evidences of
indebtedness; application; financial institution franchise tax
Sec. 1. (a) All bonds issued after March 11, 1959, or notes,
warrants, or other evidences of indebtedness issued in the state of
Indiana by or in the name of any Indiana county, township, city,
incorporated town, school corporation, state educational institution,
or any other Indiana political, municipal, public or quasi-public
corporation or body, or in the name of any special assessment or
taxing district or in the name of any authorized body of any such
corporation or district, the interest thereon, the proceeds received by
a holder from the sale of such obligations to the extent of the holder's
cost of acquisition, or proceeds received upon redemption prior to
maturity, or proceeds received at maturity, and the receipt of such
interest and proceeds, shall be exempt from taxation in the state of
Indiana for all purposes except a state inheritance tax imposed under
IC 6-4.1.
(b) All bonds issued after March 11, 1933, and before March 12,
1959, by any municipality in this state under the provisions of any
statute whereby the terms thereof provide for the payment of such
bonds out of the funds derived from the revenues of any municipally
owned utility or which are to be paid by pledging the physical
property of any such municipally owned utility, or any bonds issued
pledging both the physical property and the revenues of such utility,
or any bonds issued for additions to or improvements to be made to
such municipally owned utility, or any bonds issued by any
municipality to be paid out of taxes levied by such municipality for
the acquiring, purchase, construction, or the reconstruction of a
utility, or any part thereof, shall be exempt from taxation for all
purposes except a state inheritance tax imposed under IC 6-4.1.
(c) This section does not apply to measuring the franchise tax
imposed on the privilege of transacting the business of a financial
institution in Indiana under IC 6-5.5.
(d) No other statute exempting interest paid on debt obligations of:
(1) a state or local public entity, including an agency, a
government corporation, or an authority; or
(2) a corporation or other entity leasing real or personal property
to an entity described in subdivision (1);
applies to measuring of the franchise tax imposed on financial
institutions under IC 6-5.5.
(Formerly: Acts 1959, c.154, s.1.) As amended by Acts 1980, P.L.8,
SEC.58; P.L.80-1985, SEC.1; P.L.21-1990, SEC.37; P.L.68-1991,
SEC.17; P.L.254-1997(ss), SEC.12; P.L.2-2007, SEC.128;
P.L.172-2011, SEC.85.
Indiana Code 2015
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