1. (a) A bond, the transfer of a bond, the interest payable on a bond, the income derived from a bond, and the profit realized on sale or exchange of a bond are exempt from State and local taxes.
2. (b) A political subdivision may issue bonds under this subtitle without regard to their federal tax status.

Added by Acts 2008, c. 306, § 2, eff. Oct. 1, 2008.