[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: 31CFR356.32]

[Page 368]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 356--SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR, PUBLIC DEBT SERIES NO. 1-93)--Table of Contents
 
                   Subpart D--Miscellaneous Provisions
 
Sec. 356.32  Taxation.

    (a) General. Securities issued under this part are subject to all 
applicable taxes imposed under the Internal Revenue Code of 1986, or 
successor. Under section 3124 of title 31, United States Code, the 
securities are exempt from taxation by a State or political subdivision 
of a State, except for State estate or inheritance taxes and other 
exceptions as provided in that section.
    (b) Treasury inflation-indexed securities. Special federal income 
tax rules for inflation-indexed securities, and principal and interest 
components stripped from such securities, are set forth in Internal 
Revenue Service regulations.

[62 FR 853, Jan. 6, 1997]