31-U.S.C.-3124

§3124 – Exemption From Taxation

Pathway

Title 31 > Subtitle III > Chapter 31 > Subchapter II > Section 3124

Details

• Reference: Section 3124
• Legend: §3124 – Exemption From Taxation
• USCode Year: 2013

Provision Content

(a) Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax, except—

(1) a nondiscriminatory franchise tax or another nonproperty tax instead of a franchise tax, imposed on a corporation; and

(2) an estate or inheritance tax.

(b) The tax status of interest on obligations and dividends, earnings, or other income from evidences of ownership issued by the Government or an agency and the tax treatment of gain and loss from the disposition of those obligations and evidences of ownership is decided under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.). An obligation that the Federal Housing Administration had agreed, under a contract made before March 1, 1941, to issue at a future date, has the tax exemption privileges provided by the authorizing law at the time of the contract. This subsection does not apply to obligations and evidences of ownership issued by the District of Columbia, a territory or possession of the United States, or a department, agency, instrumentality, or political subdivision of the District, territory, or possession.

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 945; Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095.)

In subsection (a), before clause (1), the words Except as otherwise provided by law, all . . . bonds, Treasury notes, and other are omitted as surplus. The words political subdivision of a State are substituted for municipal or local authority for clarity and consistency. The word applies is substituted for extends for clarity. The words directly or indirectly are omitted as surplus. In clause (1), the word instead is substituted for in lieu for clarity.

In subsection (b), the words shares, certificates, stock, or other and sale or other are omitted as surplus. The words The tax status of . . . and the tax treatment of . . . is decided under the Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.) are substituted for shall not have any exemption, as such . . . shall not have any special treatment, as such, except as provided under the Internal Revenue Code of 1954 for clarity. The words on or after March 28, 1942 and 31:742a(a)(1st sentence words after semicolon related to the United States Maritime Commission) are omitted as executed. The last sentence is substituted for 31:742a(a)(last sentence) for clarity. The words any political subdivision thereof are omitted as included in agency or instrumentality. The text of 31:742a(b) and (c) is omitted as unnecessary.

Amendments

1986—Subsec. (b). Pub. L. 99–514 substituted Internal Revenue Code of 1986 for Internal Revenue Code of 1954.

U.S. Encyclopedia of Law Coverage

31-U.S.C.-3105 in the Legal Encyclopedia: Public Finance

In this entry about 31-U.S.C.-3105, find legal reference material, bibliographies and premiere content related to public finance in the American Encyclopedia of Law, presenting a comprehensive view of the United States public finance-specific issues, written by authorities in the field.

31-U.S.C.-3123 in the Legal Encyclopedia: Financial Management

In this entry about 31-U.S.C.-3123, find legal reference material, bibliographies and premiere content related to financial management in the American Encyclopedia of Law, presenting a comprehensive view of the United States financial management-specific issues, written by authorities in the field.

Topic Map

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