Tax-exempt sector

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Tax-exempt sector

The municipal bond market where state and local governments raise funds. Bonds issued in this sector are exempt from federal income taxes.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Tax-Exempt Sector

The market for investments exempt from federal taxes. All, or nearly all, investments in the tax-exempt sector are municipal bonds. This is because U.S. law forbids the federal government from taxing debt issues made by state and local government bodies.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
According to 2015's national accounts, financial services in Lebanon, namely banks, grasped 8 percent of the country's GDP, while 37.64 percent of the GDP is nontaxable because it's constituted of the tax exempt sectors: real estate (14.48 percent of GDP), health and social care (3.46 percent of GDP), education (5.26 percent of GDP), public administration (9.32 percent of GDP), administrative services (2.37 percent of GDP), and community services (2.75 percent of GDP).