tax-exempt bond

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Tax-exempt bond

A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Tax-Exempt Bond

A bond issued by a local or state government. Municipal bonds are usually used to raise capital for improvements in infrastructure or other aspects of the municipality. For example, a city or school district may issue a tax-exempt bond to build a new school or a new playground. They are called tax-exempt bonds because they are exempt from federal income taxes and sometimes from state and local taxes as well. Tax-exempt bonds usually pay lower coupons than corporate bonds, but because the yield is tax-free, the after-tax basis may be higher for the tax-exempt bond. Risk varies according to the municipality and the particular type of bond.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

tax-exempt bond

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Merchants Capital, an Indiana mortgage banking firm, has announced it has secured USD 21.4 million in funding using a Fannie Mae Mortgage-Backed Security (MBS) as collateral for new Tax-Exempt Bonds (M.TEB), combined with 4% low income housing tax credits (LIHTC), the company said.
The Town of Hempstead Local Development Corporation has given preliminary authorization for the university to sell $55 million in tax-exempt bonds.
All citizens benefit from tax-exempt bonds, not just the citizens of the issuing community for a specific project; the nation as a whole has a vital interest in maintaining adequate public facilities to support a dynamic economy.
Taxable bonds generally offer higher yields than tax-exempt bonds. On the other hand, the after-tax return from munis may be higher after investors pay tax on taxable bond interest.
According to the antitrust lawsuit filed on Wednesday night, Philadelphia accused Bank of America (BAC), Barclays (BCS), Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM), Royal Bank of Canada (RY) and Wells Fargo (WFC) of secretly manipulating rates for tax-exempt bonds known as variable-rate demand obligations and said the banks colluded to collect hundreds of millions of dollars in fees they did not earn, Stempel reports.
These are as follows:--Approximately $200,000,000 fiscal 2019 series B, subseries B-4 tax-exempt bonds (adjustable rate bonds); and --Approximately $75,000,000 fiscal 2019 series B, subseries B-5 tax-exempt bonds (adjustable rate bonds.
The Town of Hempstead Local Development (LDC) has approved the sale of $15 million in tax-exempt bonds on behalf of Molloy College in Rockville Centre.
(1) The majority of municipal bond issuances in 2012 and 2013 came from tax-exempt bonds. Because of this, the article will mainly focus on the tax-exempt bond issuances for those years.
NNA - LAU becomes first American university in the region to issue tax-exempt bonds, all of which are sold within the first 120 minutes placed on the market.
He was one of the principal authors of the major federal income tax regulations concerning tax-exempt bonds, including the arbitrage regulations and the private activity bond regulations, and reviewed or authored most other administrative guidance issued by the IRS on tax-exempt bonds from 1990 through 1997, including published rulings, private letter rulings, and technical advice memoranda.
Tax-exempt bonds have been in place since the first federal income tax was implemented nearly a century ago and have been essential to the growth and development of local economies and communities.