Article: State Income Tax Treatment of Municipal Bonds: 1999.

Tax Status of Bonds Tax Rates and BracketsIssued Issued out Minimum

Maximum State in state of state (income under) Flat/None (income over) ALABAMA Exempt Taxable 2.0% ($500) 5.0% ($3,000) Federal income taxes are deductible from state taxable income. Bonds issued by U.S. possessions are exempt. ALASKA Exempt Exempt None ARIZONA Exempt Taxable 2.87% ($10,000) 5.04% ($150,000) Tax rates were reduced slightly from 1998 range of 2.88% to 5.10%. ARKANSAS Exempt Taxable 1.0% ($3,099)

7.0% ($25,400) Tax brackets are indexed for inflation. Bonds issued by the District of Columbia and U.S. possessions are exempt. ...

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