[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR340.3]

[Page 237]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 340--REGULATIONS GOVERNING THE SALE OF TREASURY BONDS THROUGH COMPETITIVE BIDDING--Table of Contents
 
Sec. 340.3  Taxation.

    The income derived from the bonds will be subject to all taxes 
imposed under the Internal Revenue Code of 1954. The bonds will be 
subject to estate, inheritance, gift or other excise taxes, whether 
Federal or State, but will be exempt from all taxation now or hereafter 
imposed on the principal or interest thereof by any State, or any of the 
possessions of the United States, or by any local taxing authority.