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Tax on State and Municipal Bond Income for Individuals Repealed

Monday, August 12, 2013
The Council of the District of Columbia has enacted legislation repealing the taxation of income from state and municipal bonds for individuals, estates and trusts.  Under prior law, the tax was to apply to income from out-of-state bonds acquired on or after January 1, 2013.  Prior OTR Tax Notice 2012-05 is superseded by this notice. 
 
As a result of the new legislation, interest earned by individuals, estates and trusts from out-of-state bonds remains exempt. 
 
If there are any questions, please contact Customer Service at (202) 727-4TAX (4829).