http://www.kentucky.com/mld/kentucky/business/15477462.htm
Jim Jordan's column writes -
"Tax collectors in at least 34 states are watching a Kentucky court case that could dramatically change the way municipal bond income is taxed.
One national tax expert says the so-called Davis case could be nothing less than "earth-shattering."
Kentucky's two highest courts have declared the state's current bond tax policy unconstitutional, and the case is headed to the U.S. Supreme Court. If that court agrees, all municipal bonds might have to be taxed equally or not at all.
Thirty-four to 41 states, including Kentucky, do not tax income from their own municipal bonds that are held by state residents. But they require their residents to pay taxes on income from bonds issued by other states."
This case is going to the Supreme Court on Aug 17th. Personally, I don't think it will pass. What is the incentive of buying muni's other than taxes? Will our kind gestures continue to fund the state gov's projects if the bonds become taxable?
Jim Jordan's column writes -
"Tax collectors in at least 34 states are watching a Kentucky court case that could dramatically change the way municipal bond income is taxed.
One national tax expert says the so-called Davis case could be nothing less than "earth-shattering."
Kentucky's two highest courts have declared the state's current bond tax policy unconstitutional, and the case is headed to the U.S. Supreme Court. If that court agrees, all municipal bonds might have to be taxed equally or not at all.
Thirty-four to 41 states, including Kentucky, do not tax income from their own municipal bonds that are held by state residents. But they require their residents to pay taxes on income from bonds issued by other states."
This case is going to the Supreme Court on Aug 17th. Personally, I don't think it will pass. What is the incentive of buying muni's other than taxes? Will our kind gestures continue to fund the state gov's projects if the bonds become taxable?