What does it mean when a bond or note is tax-exempt?
Tax-exempt means that, in the opinion of legal counsel, the interest you earn on the security is exempt from federal income taxes and from California personal income taxes. Investors should consult their brokers or other financial advisors to obtain comparisons between tax-exempt California municipal bonds or notes and taxable investment alternatives. Not all State bonds are tax-exempt. For additional information about the tax status of specific bonds, read the Tax Matters section of the official statement for that particular offering. Official statements may be obtained by contacting the Investor Relations Unit at (800) 900-3873.
