Massachusetts General Laws exempts from income taxation interest on obligations of the Commonwealth of Massachusetts, its political subdivisions, and agencies or instrumentalities of the Commonwealth and its subdivisions. Gain or loss on the sale of these securities is recognized for purposes of taxation under Chapter 62, unless specifically excluded by statute. The tax treatment of specific Massachusetts bonds and of United States, federally authorized and certain other bonds is as follows:



Massachusetts



Interest



Gain

Boston Redevelopment Authority

exempt

taxable

Economic Development & Industrial Corp. of Boston

exempt

exempt

Greater Fall River Development Corp.

exempt

taxable

Health & Educational Facilities Authority

exempt

exempt

Housing Authorities

exempt

taxable

Lowell Technological Institute Authority

exempt

exempt

Massachusetts Bay Transportation Authority

exempt

exempt

Massachusetts Business Development Corporation

exempt

exempt

Massachusetts Housing Authority

exempt

taxable

Massachusetts Industrial Development Authority

exempt

taxable

Massachusetts Industrial Finance Agency

exempt

taxable

Massachusetts Municipal Wholesale Electric Company

exempt

exempt

Massachusetts Parking Authority

exempt

exempt

Massachusetts Port Authority

exempt

exempt

Massachusetts State College Building Authority

exempt

exempt



Massachusetts



Interest



Gain

Massachusetts Turnpike Authority

exempt

exempt

Mount Greylock Tramway Authority

exempt

exempt

New England Power Pool (Bonds issued by municipal electric departments of cities & towns as members of New England Power Pool)

exempt

exempt

Southeastern Massachusetts University Building Authority

exempt

exempt

Springfield Area Development Corporation

exempt

taxable

University of Lowell Building Authority

exempt

exempt

University of Massachusetts Building Authority

exempt

exempt

Woods Hole, Martha's Vineyard & Nantucket Steamship Authority

exempt

exempt

Worcester Business Development Corporation

taxable

taxable



States other than Massachusetts

All Issues

taxable

taxable



Federal and Other Entities

Asian Development Bank

taxable

taxable

Banks for Cooperatives

exempt

taxable

Federal Farm Credit Banks

exempt

taxable

Federal Home Loan Bank

exempt

taxable

Federal Intermediate Credit Banks

exempt

taxable

Federal Land Banks

exempt

taxable

Federal National Mortgage Association

taxable

taxable

Government National Mortgage Association

taxable

taxable

Guam

exempt

taxable

Inter-American Development Bank

taxable

taxable

International Bank for Reconstruction and Redevelopment (World Bank)

taxable

taxable




Massachusetts


Interest


Gain

Postal Service

exempt

taxable

Puerto Rico, Commonwealth of (including its subdivisions and authorities)

exempt

taxable

Tennessee Valley Authority

exempt

taxable

Treasury Bills

exempt

-----

Treasury Bonds

exempt

taxable

Treasury Notes

exempt

taxable

Virgin Islands, Territory of World Bank (see International Bank for Reconstruction and Redevelopment)

exempt

taxable


This Technical Information Release applies only to Massachusetts personal income taxes; it does not apply to estate taxes or taxes on corporations.

/s/L. Joyce Hampers

L. Joyce Hampers

Commissioner of Revenue

April 11, 1980

TIR 80-2