Battle Over Taxing Out-of-State Bonds Heads to Kentucky's Supreme Court

DeSue, Tedra
March 2006
Bond Buyer;3/9/2006, Vol. 355 Issue 32335, p3
Trade Publication
The article reports that the Supreme Court will review a case involving Kentucky's taxation of interest received by its residents from municipal bonds issued outside of its borders. The Kentucky Court of Appeals decided in January 2006 that it was unconstitutional for the state Department of Revenue to tax the interest on such debt. The case is vital because if the appeals court decision will prevail, it could increase borrowing costs for issuers in Kentucky.


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