For Municipal Bond we have terms and definitions in 4 topics. The topics are Accounting, Accounting Terms, Finance and Frauds and Scams.

Municipal Bond (Accounting)

BOND issued by a government or public body, the INTEREST on which is typically exempt from federal taxation.

Municipal Bond (Accounting Terms)

BOND issued by a government or public body, the INTEREST on which is typically exempt from federal taxation.

Municipal Bond (Finance)

Represents borrowing by state or local governments to pay for special projects such as highways or sewers. The interest that investors receive is exempt from some income taxes.

Municipal Bond (Frauds and Scams)

A debt obligation issued by a state, state agency or authority, or a political subdivision, such as county, city, town or village. They may be issued for general governmental needs or special projects. Issuance must be approved by referendum or by an electoral body. Before the Tax Reform Act of 1986, interest paid on municipal bonds was exempt from federal income tax and state and local income tax within the issuing state. The terms municipal and tax-exempt were synonymous. However, the Act separated municipal bonds into two broad groups--public purpose bonds and private purpose bonds. Public purpose bonds are tax-exempt and may be issued without limitations. Private purpose bonds are taxable unless specifically exempted. The difference between public and private purpose bonds is based on the percentage in which the bonds benefit private parties.

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