tax exempt Hear it!

tax exempt definition - legal

adj

Not subject to tax. This term is usually descriptive of interest on municipal and state government bonds, which (since 1913) have been exempt from federal income taxes. This is viewed as a form of federal revenue sharing.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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