What is the Municipal Bond Interest Addition?

Interest from certain bonds, notes, and other evidences of indebtedness (commonly known as municipal bonds) issued by non-federal governmental entities outside Utah will be subject to Utah's income tax if acquired after January 1, 2003.

However, interest earned on non-Utah municipal bonds is not subject to Utah tax if the issuing state (or political subdivision) does not impose an income tax on bonds issued by Utah, or the issuing state does not impose an income tax.

See details at Utah's website.

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