Client Alerts

Supreme Court Upholds State Tax Exemptions for In-State Municipal Bonds

By Joseph P. Opich and Matt Walding

In a 7-2 decision published May 19, 2008, the U.S. Supreme Court upheld the ability of the states to provide a state income tax exemption for interest derived from in-state municipal bonds while subjecting interest derived from municipal bonds issued by other states and their political subdivisions to tax.