Triple tax-exempt

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Triple tax-exempt

Municipal bonds featuring federal, state, and local tax-free interest payments.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
He then announced that he was investing the entire sum in a diversified portfolio of triple tax-free municipal bonds yielding around 4%.
Rather than "locking up" insurance in an irrevocable trust, this approach lets the second spouse receive life insurance proceeds "triple tax-free"--without gift, estate or income taxes--when the first spouse dies.
Typically, the IDA can act as a conduit to issue triple tax-free revenue bonds toward the construction of manufacturing facilities, while other deep pocketed tenants might simply obtain the right to spend money on fixtures and furnishings without paying city or state taxes.