taxable municipal bond

Taxable municipal bond

Taxed private-purpose bonds issued by the state or local government to finance prohibited projects such as sports stadiums.

Taxable Municipal Bond

A municipal bond in which a local government entity seeks to raise money for a private company with no obvious public benefit. The municipality issues a taxable municipal bond when it wishes to attract a business and the jobs it would bring to the area, especially when the business may be otherwise unable to obtain financing for the project. While this may benefit the area in the long term, the bond remains taxable unless then municipality can prove that a public benefit derives directly from the bond. Taxable municipal bonds generally are not guaranteed by the revenue of the municipality. See also: Private activity bonds.

taxable municipal bond

A municipal bond in which interest paid to the bondholder does not qualify as tax-exempt for federal tax purposes because of the use to which the bond proceeds are put by the municipal borrower. Taxable municipal bonds were reissued in 1986, the first issue since 1913, because of limitations placed on municipal obligations by tax reform. Although taxable municipal bonds are subject to federal taxation, most are not subject to taxation by the state in which the municipal issuer is located. Taxable municipal bonds are generally more appropriate for pension funds and other tax-exempt investors than for individual investors.
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S&P Taxable Municipal Revenue Bond Infrastructure Index : An index consisting of revenue bonds in the S&P Taxable Municipal Bond Index that are related to infrastructure.
As a result of its taxable status, a taxable municipal bond produces interest income that is subject to federal income tax.
5 on the taxable municipal bond market, which attracted more than 300 registrants.
NEW YORK, June 11 /PRNewswire/ -- Standard & Poor's, the world's leading index provider, announced today that it has expanded its closely followed family of municipal bond indices with the launch of the S&P Taxable Municipal Bond Index.
Report Identifies How Corporate Bonds Reduce the Diversification Benefits of a Balanced Portfolio and the Taxable Municipal Bond Solution
We have agreed to issue the taxable municipal bond in three series A, B, C for $110 million each totalling $330 million dollars.
The company is now positioned to prepare the documentation for the Taxable Municipal Bond Offering.
2 million -- the Lebenthal New York, New Jersey and Taxable Municipal Bond Funds.
These were taxable municipal bonds that carried special tax credits and federal subsidies for either the bond issuer or the bondholder.
5 billion in Build America Bonds in two tranches Monday, the largest sale of those taxable municipal bonds in more than a month.
Part of the American Recovery and Reinvestment Act, BABs are taxable municipal bonds carrying special tax credits and federal subsidies for municipal bond issuers.
Gore said that President Clinton would propose some $700 million over the next five years in new federal spending to leverage up to $10 billion in taxable municipal bonds, which he dubbed "Better America Bonds.