Are FHLB Bonds State and Locally Taxable?

[MercyMe]

I'm finding conflicting info around the web regarding whether or not FHLB bonds are state and locally taxable. Some sites say they are and some say they are not state taxable. Few sites mention local taxes. And other sites say they are "generally" exempt from state and local taxes.

What the heck?

 

[njhowie]

Vanguard says...

Interest on certain agency bonds, including securities issued by the FHLB and FFCB, is exempt from state taxes.

https://personal.vanguard.com/us/content/Funds/FixIncAgencyBondsContent.jsp

I would think it unusual if it was exempt at the state level, but taxable at the local level.