muni

(redirected from munis)
Also found in: Dictionary, Thesaurus.
Related to munis: Municipal bonds

Municipal 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 bond to build a new school or a new playground. Municipal bonds are exempt from federal income taxes and sometimes from state and local taxes as well. Municipals usually pay lower coupons than corporate bonds, but because the yield is tax-free, the after-tax basis may be higher for a municipal bond. Risk varies with the municipality and the particular type of municipal bond. It is sometimes called a municipal improvement certificate.

muni

Municipal bond (muni).

Municipal bonds are debt securities issued by state or local governments or their agencies to finance general governmental activities or special projects.

For example, a state may float a bond to fund the construction of highways or college dormitories.

The interest a muni pays is usually exempt from federal income taxes, and is also exempt from state and local income taxes if you live in the state where it was issued.

However, any capital gains you realize from selling a muni are taxable, and some muni interest may be vulnerable to the alternative minimum tax (AMT).

Munis generally pay interest at a lower rate than similarly rated corporate bonds of the same term. However, they appeal to investors in the highest tax brackets, who may benefit most from the tax-exempt income.

References in periodicals archive ?
The city cited areas of cost savings, such as reduced hardware spending and lower energy costs resulting from a smaller server footprint, in choosing to have Munis delivered via Tyler's SaaS model.
Even though a muni might be tax-exempt at issue, investors trading munis in secondary markets may be taxed on their investment in this bond.
As of the end of June, he noted, the spread between investment-grade corporate debt and munis, as measured by Bank of America/Merrill Lynch Bond Indices, stood at only 39 basis points.
We sought to improve our reporting capabilities and to streamline our overall business practices -- the MUNIS system will give Indiana County the tools to accomplish these goals.
If you were to hold a muni bond in an IRA, you would be accepting that lower yield without getting the muni-bond tax advantage, since taxes on investment income in an IRA are already deferred until you withdraw money from your account, perhaps many years from now.
We believe that Munis provides the broadest applications and is the most flexible ERP solution available, and, combined with our evergreen philosophy, this makes Tyler the best partner for cities that want a long-term and affordable ERP system from a company with the financial strength and history of success that can be relied upon," said Richard E.
President of Tyler's MUNIS Financial Management Solutions, views the agreements as a reflection of Tyler's commitment to expansion in Georgia.
The town of Mount Desert invested in an array of Munis applications, including financial management, human capital management, tax billing and self service for citizens and employees.
Huntsville chose Munis because of its proven technology platform, system functionality that met the city's technological requirements and Tyler's success with other public sector clients.
Dick Peterson, President of Tyler's MUNIS division, commented, "Signing contracts with these three Ohio communities has once again reinforced the strong Tyler presence, specifically with MUNIS financial solutions, in the state of Ohio.
Firms like Bell's capitalized on this trend, but they would pay a price later for leveraging their future too heavily in munis.