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Taxable Municipal Bonds

A Growing Market

State or local governments issue taxable municipal bonds when the federal government will not subsidize or fully subsidize the financing of certain activities that do not provide a significant benefit to the general public. Examples are;

  • Investor-led housing

  • Local sports facilities

  • Refunding of a refunded issue and borrowing to replenish a municipality’s underfunded pension plans

Taxable municipal bonds offer yields that can be compared to those of other taxable bonds, such as corporate bonds, of similar credit quality, call features and maturity. The growth of the taxable municipal market in recent years has been significant. In fact, in the last five years alone, over $134 billion in taxable municipals have been issued.

State Taxation of Municipal Bonds for Individuals

Even though tax-free municipal bonds are exempt from all federal income taxes, state taxation of municipal bonds can vary. States can tax bonds that are within their own state as well as out-of-state bonds.

If you’d like more information about taxable municipal bonds, speak to a GMS bond specialist today. Municipal bonds are our core product and we have the knowledge, expertise and resources to help you with your financial goals. Purchase or sell a bond or contact us today for more information. You can also call us at 877-467-0070.