triple tax exempt

Triple Tax-Exempt

Describing a municipal bond that is exempt from federal, state, and local taxes. The United States Constitution forbids the federal government from taxing any state and local bonds. Most states and municipalities offer tax exemptions for residents who invest in their bonds; thus, to be eligible for triple-tax-free status, a bondholder must be resident in the municipality and/or state issuing the bond. Triple-tax exempt bonds almost always offer low returns, exposing bondholders to inflation risk. See also: After-Tax Basis.

triple tax exempt

Of, relating to, or being a municipal bond, trust, or fund paying interest that is free of federal, state, and local income taxation for individuals residing in certain localities. This situation results from the fact that most but not all states and localities exempt municipal bond interest from taxation if the bonds are issued within that particular state. Triple tax exemption is of particular interest to investors residing in high-tax states and localities, such as New York City.
References in periodicals archive ?
The bonds--which are triple tax exempt at the state, city and federal level--will finance construction of the nearly two million square feet office tower already rising at the World Trade Center site.
3m in triple tax exempt special facility revenue bonds.
The other option is to put triple tax exempt municipal bonds in the trust.
A golden opportunity to lock in high yields for triple tax exempt issues may soon be at hand, but don't reach to low.
This is triple tax exempt bond financing and it's very important financially to these groups," Patterson said.
Supported by Mayor Michael Bloomberg and Governor George Pataki, as well as congressman Charles Rangel, the $76 million project has been identified as a development that will help revitalize downtown, a quality that determined its eligibility for Liberty Bonds, which are triple tax exempt.