Supreme Court Okays Same-State Muni Bond Tax Exemption
States may continue to exempt their residents from paying taxes on that state's municipal bonds, according to a recent ruling by the U.S. Supreme Court. The decision overturns a lower court decision involving the state of Kentucky. If it had been allowed to stand, the lower court decision would have had a substantial impact on muni bond investors, particularly those who own single-state mutual funds designed to provide a double tax advantage to residents of a particular state. The Supreme Court ruled that such in-state tax exemptions play an important role in helping states fund public projects.
Clarifying the tax status of state municipal bonds for local residents removes an issue that, coupled with the general credit crunch, had been weighing on the market for municipal bonds. For a copy of the ruling in Department of Revenue of Kentucky et al. v. Davis, click here.
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For more information about Bay Colony Partners LLC, contact Bob Auditore at: bauditore@baycolonypartners.com or Gary Cowles at: gcowles@baycolonypartners.com or call 781.722.0005.
About Bay Colony Partners
Bay Colony Partners provides employers and employees with 401(k) retirement plans and executive benefits services. Principals Bob Auditore and Gary Cowles, partners, are experts in their respective practice area and directly services clients with strategic direction, customized solutions, as well as the implementation and administration of the plans and initiatives.
As a consulting firm with brokerage services, Bay Colony Partners is a source for the latest knowledge that employers and employees need to plan and shape their programs. They work with company leadership to ensure regulatory compliance, fiduciary responsibility, and comprehensive programs for senior executives and all staff alike.
Located in Woburn, MA, the company services employers throughout the New England region.
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Contact: Robert Auditore,
bauditore@baycolonypartners.com
Bay Colony Partners
400 West Cummings Park,
Suite 1150
Woburn, MA 01801
www.baycolonypartners.com
781.722.0005