Qualifying bonds, notes, warrants, or other evidences of
indebtedness; application; financial institution franchise tax
Sec. 1. (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 county, township, city, incorporated
town, school corporation, state educational institution or state
supported institution of higher learning, or any other 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
except a state inheritance tax imposed under IC 6-4.1.
(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 except a state inheritance tax imposed under IC 6-4.1.
(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.
(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.
Last modified: May 28, 2006