Introduction
This memorandum provides a brief explanation and overview of
tax-exempt financing for governmental purposes under Georgia law
and the Internal Revenue Code of 1986. A summary is presented of
the state law procedures and requirements for issuance of bonds and
other forms of financing by local governments and public
authorities. Rules governing the exemption from federal income
taxation of interest paid on such obligations are also outlined. A
variety of governmental debt obligations may qualify for tax
exemption (e.g., bonds, notes, revenue certificates, bank loans,
leases and certificates of participation), and these are sometimes
referred to interchangeably as "bonds," "debt,"
or "obligations." This memorandum does not address
private activity bond financing for private companies or Section
501(c)(3) organizations. For further information on these subjects
you may request overviews of those subjects.
