2006-09-29 06:52:47 · 3 answers · asked by ckhhuff2438 1 in Business & Finance ➔ Investing
Holden's answer is correct -- give him the points. I just wanted to point out that the word "Muni" refers to "Municipal." So, Munis are bonds that are issued by municipalities -- usually for public works.
The interest on Munis is tax free to those living in the municipality. There is no state, federal or local tax if you live in the municipality that issued it. There is no state or federal tax on the interest if you live elsewhere in the state (though you might have to pay local taxes on the interest earned). There is no federal tax due on interest from Munis if you live in a different state -- but you might have to pay state and local taxes on it.
2006-09-29 07:04:55 · answer #1 · answered by Ranto 7 · 3⤊ 0⤋
A debt instrument issued by a city that pays dividends which are exempt from Federal Income Taxes.
Municipal Bond
Depending on your local and state area, they may be free from state and local taxes also.
2006-09-29 15:17:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
money loaned to a local government for local projects or spending, like on schools or public works. the interest they pay is usually tax free for both local, state, and federal taxes
2006-09-29 13:55:53 · answer #3 · answered by holden 4 · 2⤊ 0⤋