HRS §46-75
County improvement bonds are tax-free
Bonds that counties issue to pay for improvements, plus the interest they earn, are free from state, county, and city taxes. The only taxes that still apply are inheritance, transfer, and estate taxes.
counties
The statute, as written — Improvement bonds exempt from taxation
All bonds issued by any of the counties of the State for improvements by assessments, and the interest thereon, shall be exempt from all state, county, and municipal taxation, except inheritance, transfer, and estate taxes.
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