§ 6-8-5-1 — Qualifying bonds, notes, warrants, or other evidences of indebtedness; application; financial institution franchise tax

Indiana § 6-8-5-1

• Jurisdiction: Indiana
• Art. 8: MISCELLANEOUS
• Ch. 5: Exemption of Proceeds and Interest on Municipal Bonds

Text

(a) All bonds issued after March 11, 1959, or
notes, warrants, or other evidences of indebtedness issued in the state
of Indiana by or in the name of any Indiana county, township, city,
incorporated town, school corporation, state educational institution, or
any other Indiana political, municipal, public or quasi-public
corporation or body, or in the name of any special assessment or taxing
district or in the name of any authorized body of any such corporation
or district, the interest thereon, the proceeds received by a holder from
the sale of such obligations to the extent of the holder's cost of
acquisition, or proceeds received upon redemption prior to maturity, or
proceeds received at maturity, and the receipt of such interest and
proceeds, shall be exempt from taxation in the state of Indiana for all
purposes.
(b) All bonds issued after March 11, 1933, and before March 12,
1959, by any municipality in this state under the provisions of any
statute whereby the terms thereof provide for the payment of such
bonds out of the funds derived from the revenues of any municipally
owned utility or which are to be paid by pledging the physical property
of any such municipally owned utility, or any bonds issued pledging
both the physical property and the revenues of such utility, or any
bonds issued for additions to or improvements to be made to such
municipally owned utility, or any bonds issued by any municipality to
be paid out of taxes levied by such municipality for the acquiring,
purchase, construction, or the reconstruction of a utility, or any part
thereof, shall be exempt from taxation for all purposes.
(c) This section does not apply to measuring the franchise tax
imposed on the privilege of transacting the business of a financial
institution in Indiana under IC 6-5.5.
(d) No other statute exempting interest paid on debt obligations of:
(1) a state or local public entity, including an agency, a
government corporation, or an authority; or
(2) a corporation or other entity leasing real or personal property
to an entity described in subdivision (1);
applies to measuring of the franchise tax imposed on financial
institutions under IC 6-5.5.
[Pre-Local Government Recodification Citations: 6-8-5-1;
19-3-18-1.]
Formerly: Acts 1959, c.154, s.1. As amended by Acts 1980,
P.L.8, SEC.58; P.L.80-1985, SEC.1; P.L.21-1990, SEC.37;
P.L.68-1991, SEC.17; P.L.254-1997(ss), SEC.12; P.L.2-2007,
SEC.128; P.L.172-2011, SEC.85; P.L.79-2017, SEC.53.