Income from bonds exempt from state taxes; investment by fiduciaries.

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(A) A bond provided for in this article and the income from a bond is exempt from all taxation in the State except for inheritance, estate, or transfer taxes, regardless of the federal income tax treatment of the interest from the bond.

(B) The exercise of the powers granted by this chapter is in all respects for the benefit of the citizens of the State and for the promotion of their welfare, convenience, and prosperity. Property, whether real or personal, tangible or intangible, of the department or the trustees and the income and operations of the department and the Heritage Trust Program are exempt from taxation or assessment by the State or its political subdivisions.

(C) It is lawful for executors, administrators, guardians, committees, and other fiduciaries to invest monies in their hands in a bond provided for in this article. This section does not relieve a person from the duty of exercising reasonable care in selecting investments.

HISTORY: 2006 Act No. 251, Section 2.B, eff March 28, 2006.


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