Technical Information Release  TIR 80-2: Income Tax Treatment of Interest and Gains on Certain Bonds

Date:	04/11/1980
Organization:	Massachusetts Department of Revenue
Referenced Sources:	Massachusetts General Laws

Personal Income Tax

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