IC 6-8-5
    Chapter 5. Exemption of Proceeds and Interest on MunicipalBonds From All Taxes

IC 6-8-5-1
Qualifying bonds, notes, warrants, or other evidences ofindebtedness; application; financial institution franchise tax
    Sec. 1. (a) All bonds issued after March 11, 1959, or notes,warrants, or other evidences of indebtedness issued in the state ofIndiana by or in the name of any county, township, city, incorporatedtown, school corporation, state educational institution, or any otherpolitical, municipal, public or quasi-public corporation or body, orin the name of any special assessment or taxing district or in thename of any authorized body of any such corporation or district, theinterest thereon, the proceeds received by a holder from the sale ofsuch obligations to the extent of the holder's cost of acquisition, orproceeds received upon redemption prior to maturity, or proceedsreceived at maturity, and the receipt of such interest and proceeds,shall be exempt from taxation in the state of Indiana for all purposesexcept a state inheritance tax imposed under IC 6-4.1.
    (b) All bonds issued after March 11, 1933, and before March 12,1959, by any municipality in this state under the provisions of anystatute whereby the terms thereof provide for the payment of suchbonds out of the funds derived from the revenues of any municipallyowned utility or which are to be paid by pledging the physicalproperty of any such municipally owned utility, or any bonds issuedpledging both the physical property and the revenues of such utility,or any bonds issued for additions to or improvements to be made tosuch municipally owned utility, or any bonds issued by anymunicipality to be paid out of taxes levied by such municipality forthe acquiring, purchase, construction, or the reconstruction of autility, or any part thereof, shall be exempt from taxation for allpurposes except a state inheritance tax imposed under IC 6-4.1.
    (c) This section does not apply to measuring the franchise taximposed on the privilege of transacting the business of a financialinstitution in Indiana under IC 6-5.5.
    (d) No other statute exempting interest paid on debt obligationsof:
        (1) a state or local public entity, including an agency, agovernment corporation, or an authority; or
        (2) a corporation or other entity leasing real or personalproperty to an entity described in subdivision (1);
applies to measuring of the franchise tax imposed on financialinstitutions under IC 6-5.5.
(Formerly: Acts 1959, c.154, s.1.) As amended by Acts 1980, P.L.8,SEC.58; P.L.80-1985, SEC.1; P.L.21-1990, SEC.37; P.L.68-1991,SEC.17; P.L.254-1997(ss), SEC.12; P.L.2-2007, SEC.128.