PRIA, Government Policy, Made Personal

Summary

The American Samoa legislature may issue industrial development bonds after September 20, 1984. These are the kind of bonds defined in federal tax law (section 103(b)(2) of title 26). Interest on any bond or other obligation issued by or for the Government of American Samoa cannot be taxed as income by American Samoa, any U.S. State, the District of Columbia, any U.S. territory or possession, or their local governments. That protection covers only income taxes. It does not apply to gift, estate, inheritance, legacy, succession, or other wealth-transfer taxes. For the federal rule on excluding interest, see section 103 of title 26.

Title 48, §1670

Territories and Insular Possessions, Source: USLM XML via OLRC

(a)Issuance

The legislature of the government of American Samoa may cause to be issued after September 20, 1984, industrial development bonds (within the meaning of section 103(b)(2) of title 26).

(b)Exemption of all bonds from income taxation by State and local governments

(1)In general

The interest on any bond or other obligation issued by or on behalf of the Government of American Samoa shall be exempt from taxation by the Government of American Samoa and the governments of any of the several States, the District of Columbia, any territory or possession of the United States, and any subdivision thereof.

(2)Exemption applicable only to income taxes

The exemption provided by paragraph (1) shall not apply to gift, estate, inheritance, legacy, succession, or other wealth transfer taxes.

(c)Cross reference

For exclusion of interest for purposes of Federal income taxation, see section 103 of title 26.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 103, referred to in subsec. (a), which related to interest on certain governmental obligations was amended generally by Pub. L. 99–514, title XIII, § 1301(a), Oct. 22, 1986, 100 Stat. 2602, and as so amended relates to interest on State and local bonds. section 103(b)(2), which prior to the general amendment defined industrial development bond, relates to the applicability of the interest exclusion to arbitrage bonds.

Amendments

2004—Subsec. (b). Pub. L. 108–326 amended heading and text generally, substituting provisions relating to exemption of all bonds from income taxation by State and local governments for provisions relating to exemption from taxation and definition of State. 1986—Subsecs. (a), (c). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

Statutory Notes and Related Subsidiaries

Effective Date

of 2004 Amendment Pub. L. 108–326, § 2, Oct. 16, 2004, 118 Stat. 1270, provided that: “This Act [amending this section] shall apply to obligations issued after the date of the enactment of this Act [Oct. 16, 2004].”

§1670 Industrial Development Bonds