The issuance, transfer, and interest income earned on any bonds issued by a local agency under this article is exempt from taxation of every kind by any state or local entity. The local agency shall not be required to pay any taxes on, or with respect to, the income earned on the investment of proceeds of the bonds placed in escrow or otherwise.

(Added by Stats. 1985, Ch. 1033, Sec. 18. Effective September 27, 1985.)

Terms Used In California Government Code 53588

  • bonds: as used in this article means: bonds as defined in Section 53550, or revenue bonds as defined in Section 53570. See California Government Code 53580
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • local agency: means public district, public corporation, authority, agency, board, commission, county, city and county, city, school district, or other public entity or any improvement district or zone thereof. See California Government Code 53580
  • State: means the State of California, unless applied to the different parts of the United States. See California Government Code 18
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