Sec. 8-312. Bonds and notes under this chapter free from state or municipal taxes except estate and gift taxes.
Sec. 8-312. Bonds and notes under this chapter free from state or municipal
taxes except estate and gift taxes. It is hereby determined that the purposes of this
chapter are public purposes and that the municipalities will be performing an essential
governmental function in the exercise of the powers conferred upon them by this chapter.
The state covenants with the purchasers and all subsequent holders and transferees of
notes and bonds issued by the municipality, in consideration of the acceptance of and
payment for the notes and bonds, that the principal and interest of notes and bonds of
the municipality issued pursuant to this chapter shall at all times be free from taxation,
except for estate and gift taxes, imposed by the state or by any political subdivision
thereof. Municipalities are authorized to include this covenant of the state in any
agreement with the holder of such notes or bonds.
(P.A. 79-596, S. 13, 17; P.A. 89-331, S. 9, 30.)
History: P.A. 89-331 clarified the exemption from taxation of the principal and interest of the bonds.