§ 142-12. State bonds exempt from taxation. - North Carolina Statutes

§142‑12.  State bonds exempt from taxation.

Bonds and other evidences ofindebtedness issued by the State are exempt from State taxation to the extentprovided in the act authorizing their issuance. If the act authorizing theissuance of the instruments does not address exemption from taxation, then theyare exempt from taxation by the State or any of its subdivisions, except forinheritance or gift taxes, income taxes on the gain from the transfer of theinstruments, and franchise taxes. Unless the act authorizing the issuance ofthe instruments provides otherwise, the interest on the instruments is notsubject to taxation as income. (1852, c. 10, s. 4; R.C., c.90, s. 5; Code, s. 3565; Rev., s. 5022; C.S., s. 7410; 1995, c. 46, s. 14.)