Tax-Exempt Bonds, 1996-2002

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by Cynthia Belmonte

tate and local governmental units issued nearly

$2.1 trillion of tax-exempt bonds between 1996

and 2002. The majority ($1.5 trillion) of these

tax-exempt bonds were Governmental bonds, the

proceeds of which helped finance public projects

(such as schools, streets, and utilities). The balance,

$0.5 trillion, comprised private activity bonds, the

proceeds of which were used for qualified facilities

(such as airports, docks and wharves, and solid waste

disposal facilities), as well as to benefit Internal

Revenue Code section 501(c)(3) organizations (such

as hospitals and private universities).

A bond is an interest-bearing security of indebtedness, i.e., an obligation by the issuer to repay a

certain sum of money by a future date, with interest

payable at a specified rate. Section 103 of the Internal Revenue Code allows for the exclusion from

gross income of interest on obligations of a State or

local government. This means that the interest received by bondholders is not subject to Federal income tax. This tax exemption effectively lowers the

borrowing cost of tax-exempt debt issuers, since

bondholders are generally willing to accept an interest

rate lower than that earned on comparable taxable

bonds. In addition, for State income tax purposes,

some States allow for the exclusion from income of

interest from bonds issued by government agencies

within their own States, thus increasing the benefit to

bondholders. State and local governments use taxexempt bond financing to raise capital for essential

public facilities, infrastructure, and general capital

improvements. Tax-exempt bonds are classified as

either “Governmental” or “private-activity,” depending on whether the proceeds are used and secured by

public or private entities and resources.

More than $1.5 trillion of tax-exempt Governmental bonds were issued between 1996 and 2002. Almost 80 percent of this amount was from long-term

bonds (i.e., those having maturities of 13 months or

more). New money issues accounted for 61.3 percent of the $1.2 trillion of long-term tax-exempt

Governmental bond proceeds issued during this pe-

Cynthia Belmonte is an economist with the Special

Studies Branch Special Projects Section. This article was

written under the direction of Barry Johnson, Chief.

riod, while refunding issues made up the difference

(38.7 percent). More than half (55.2 percent) of the

dollar volume of all long-term Governmental bonds

issued during this period was used to finance projects

related to education, utilities, and transportation.

More than $548 billion of tax-exempt private

activity bonds were issued during the 7-year period

extending from 1996 through 2002. Most of these

bond issues were long-term. Of the $541.4 billion of

long-term tax-exempt private activity bonds issued

during this period, more than half (56.1 percent) were

new money issues, and 43.9 percent were used to

refund prior issues. While the types of private activities qualified for tax-exemption have increased over

the years, four main types--namely, bonds issued to

benefit entities exempt from income tax under Internal Revenue Code section 501(c)(3), qualified mortgage bonds, residential rental bonds, and airport

bonds--have consistently contributed at least 75

percent of the total dollar volume of long-term bonds

issued during each of the years included in this article.

The annual Budget of the United States Government includes estimates of revenue losses associated with various income tax exclusions, deductions,

credits, and special tax rates. The exclusion from

gross income of the interest earned on bonds issued

by State and local governmental units represents

foregone revenue to the U.S. Treasury. For Fiscal

Year 2002, the U.S. Treasury Department estimate

of this revenue loss was $28.6 billion--$23.5 billion

was attributable to tax-exempt Governmental bonds

and another $5.1 billion to tax-exempt private activity

bonds [1]. This article includes data on both taxexempt Governmental and private activity bonds for

issue years 1996 through 2002, with particular emphasis on those bonds issued in 2002.

Background

Since the inception of the modern-day Federal

income tax in 1913, an income exclusion from gross

income for interest received by holders of debt

obligations (i.e., bonds) of States and their political

subdivisions has been included in Federal income tax

law [2]. This provision, set forth in section 103 of the

Internal Revenue Code of 1986, excludes private

activity bonds that are not “qualified bonds,” “arbitrage bonds,” and bonds not in registered form.

151

Tax-Exempt Bonds, 1996-2002

152

Both Governmental and private activity bonds are

obligations issued by or on behalf of State and local

governmental units; it is the use of proceeds that

differentiates the two. Governmental bond proceeds

finance essential government operations. Private

activity bond proceeds are used by a private entity.

Internal Revenue Code Section 141 defines a bond as

a private activity bond if both of the following criteria

are met: 1) more than 10 percent of the bond proceeds are used for a private business purpose; and,

2) more than 10 percent of the bond debt service is

derived from private business use and is secured by

privately used property. The combination of such use

and security in excess of 10 percent is what results

in a bond being characterized as a “private activity

bond.” A private activity bond’s tax-exempt status

then depends on whether it is deemed a “qualified”

bond, as defined by Internal Revenue Code section

141(e).

Qualified bonds, termed tax-exempt private

activity bonds in this article, include “exempt facility

bonds,” qualified mortgage bonds, qualified veterans’

mortgage bonds, qualified small issue bonds, qualified

student loan bonds, qualified redevelopment bonds,

and qualified section 501(c)(3) bonds (all of which

are defined in the “Explanation of Terms” section at

the end of this article). The major types of exempt

facility bonds are bonds issued for airports; docks and

wharves; sewage facilities; solid waste disposal

facilities; qualified residential rental projects; and

facilities for the local furnishing of electricity or gas.

Section 501(c)(3) bonds are issued by State and local

governments to finance the activities of charitable

and similar organizations that are tax-exempt under

Code section 501(c)(3). The primary beneficiaries of

these bonds are hospitals, universities, and organizations that provide low-income housing or assisted

living facilities.

Refunding involves the sale of a new issue (the

“refunding bond”), the proceeds of which are to be

used to pay debt service on and retire an outstanding

issue (the “refunded bond”). Generally, this is done

to save interest, extend the maturity of the debt, or

remove restrictive covenants in security documents.

Refunding issues are classified as either “current” or

“advanced,” depending on the time between the

issuance of the new bonds and the maturity date (or

specified call date) of the outstanding issue. Call

provisions allow the issuer to retire all or a portion of

the bonds prior to the stated maturity date. Many

State and local bonds were issued with call provisions

that allowed the issuer to retire the bonds beginning

10 years from the date of issue, usually at par or at a

small premium above par [3]. Current refunding

occurs when the new bond is issued within 90 days

of the final payment of principal or interest (redemption) on the prior issue. Advance refunding occurs

when the new bond is issued more than 90 days before

the final payment of principal or interest (redemption)

on the prior issue. Generally, the proceeds of the

new (“refunding”) issue are invested in Government

securities, which are placed in escrow. The interest

and principal repayments on these securities are then

used to repay the refunded bonds over time.

Advanced refundings result in two sets of bond

proceeds outstanding for one particular project, for an

extended period of time. To limit this, the Tax Reform Act of 1986 imposed restrictions on advance

refundings of both Governmental and tax-exempt

private activity bonds. New tax-exempt Governmental bonds are limited to one advance refunding, although there exists a transition rule that allows bonds

issued before the effective date of the Tax Reform

Act of 1986 to be advance refunded twice (once if

they had already been advance refunded one or more

times before that date). Advance refundings are

prohibited with respect to all tax-exempt private

activity bonds, except for section 501(c)(3) bonds.

Another exception applies to bonds designated as

“liberty advance refunding bonds,” which are allowed

one advance refunding [4].

Tax-exempt private activity bonds are subject to

State volume limitations (i.e., volume caps). A single

unified volume cap (introduced in the Tax Reform

Act of 1986) limits the dollar amount of most taxexempt private activity bonds that each State can

issue annually [5]. Refunding bonds are not subject

to volume cap limitations, as long as there is no increase in the principal amount of the outstanding

bond. States are allowed to carry over any unused

portion of the volume cap of a particular year for up

to 3 years.

Tax-ExemptGovernmentalBonds

Total Governmental Bond Volume

Between 1996 and 2002, a total of $1.5 trillion of taxexempt Governmental bonds was issued (Table 1).

Tax-Exempt Bonds, 1996-2002

Figure A

Volume of Governmental Bonds Issued, by Type

and Issue Year, 1996-2002

Average Annual State and Local Bond Interest

Rates, 1996-2002

Billions of dollars

Interest rate ¹

400

7.50

7.25

350

340.1

7.00

6.75

300

6.50

264.3

250

200

6.25

227.0

171.7

6.00

183.7

179.5

204.4

169.3

150

136.8

119.3

135.7

52.4

62.3

50.5

5.09

5.25

5.15

5.04

5.00

134.9

90.2

100

5.71

5.43

5.52

5.50

176.8

133.2

117.2

5.76

5.75

4.75

87.4

34.5

4.50

4.25

1996

1997

1998

1999

2000

2001

2002

New money issues

1997

1998

1999

2000

2001

2002

Year

Issue year

All issues

4.00

1996

Refunding issues

¹ Data for interest rates obtained from Federal Reserve Board, "Federal Statistical Release H.15: Selected Interest Rates, Historical Data."

Figure A tracks the year-to-year changes in bond

issuances. The total dollar volume of tax-exempt

Governmental bonds issued increased slightly between 1996 and 1997, from $171.7 billion to $179.5

billion, before increasing 26.5 percent to reach $227.0

billion in 1998. The dollar volume of bonds issued

then decreased steadily each of the next 2 years,

down to a low of $169.3 billion for 2000, before

rebounding to $264.3 billion for 2001 and a new high

of $340.1 billion for 2002.

Between 1996 and 2000, there was relatively

little year-to-year variation in new money issues of

tax-exempt Governmental bonds. In contrast, between

2000 and 2002, there was a dramatic increase in new

money issues. During these 2 years, the dollar volume of new issues increased more than 50 percent.

Refunding issues of Governmental bonds ranged

from a low of $34.5 billion for 2000 to a high of

$135.7 billion for 2002. Between 1996 and 1998,

average annual State and local bond interest rates fell

from 5.8 percent to 5.1 percent, then increased to 5.7

percent in 2000, before falling to 5.0 percent for 2002

(Figure A) [6]. The inverse relationship between

interest rates and refundings over the time period

covered suggest that issuers took advantage of lower

rates to retire outstanding high-interest bonds.

Uses of Governmental Bond Proceeds

For the years covered in this article, the majority of

tax-exempt Governmental bond issues were longterm (i.e., having maturities of 13 months or more).

Still, there exist specific purposes for which shortterm Governmental bond issues are issued. Revenue

and tax anticipation notes are short-term issues

(generally, not more than 1 year between issue date

and maturity date), the proceeds of which are to be

153

Tax-Exempt Bonds, 1996-2002

154

paid off from expected lump-sum tax or grant

receipts in the near future. Of the $340.1 billion of

tax-exempt Governmental bonds issued for 2002, only

$64.4 billion (18.9 percent) were short-term issues,

while the remaining $275.7 billion (81.1 percent)

were long-term issues. (It is for this reason that the

remainder of this article focuses on long-term issues.)

More than half (53.7 percent) of the total dollar

volume of long-term bond issues were new money

issues, while the remainder were refunding bond issues.

For 1996 through 2002, the dollar volume of longterm tax-exempt Governmental bond issues ranged

from $126.5 billion (for 1996) to $275.7 billion (for

2002). During this period, of the total $1.2 billion of

long-term Governmental bonds issued, the proceeds

of 55.2 percent, combined, were used for three

purposes: education (28.1 percent), utilities (14.3

percent), and transportation (12.8 percent) (Table 2).

Education bonds comprised $232.8 billion, or 31.0

percent, of the total $750.7 billion in new money longterm bonds issued during the period. For 2002 alone,

more than $45.0 billion in Governmental bonds were

issued for education, accounting for more than 30

percent of the $148.1 billion of new money long-term

bonds issued that year.

A portion of bond proceeds is often used to pay

for associated issuance costs (e.g., fees paid to

trustees and bond counsel), fund reserve accounts,

and refund prior bond issues. Table 3 presents uses

of tax-exempt long-term Governmental bond proceeds for 2002. Of the $275.7 billion of long-term

tax-exempt Governmental bonds issued, issuers used

$2.6 billion (0.9 percent) of the bond proceeds for

bond issuance costs, $1.1 billion (0.4 percent) for

credit enhancement, and $3.7 billion (1.3 percent) for

reserve fund allocations. Of the remaining $268.3

billion, $125.0 billion were used to refund or retire

prior bond issues, leaving $143.4 billion to be used for

new project costs.

New money issues of long-term tax-exempt

Governmental bonds have increased every year

between 1996 and 2002, except for 1999, when the

total dollar volume dropped from $109.1 billion to

$103.1 billion (Table 1). In every year covered by

this article, over half of all long-term Governmental

bonds have been new money issues--this proportion

has ranged from a low of 53.7 percent in 2002 to a

high of 78.3 percent in 2000.

Figure B shows the annual distribution of new

money long-term Governmental bond proceeds, by

purpose of bond issue. Education bonds consistently

accounted for about 30 percent of the proceeds for

all new money long-term Governmental issues each

year. Bonds issued for utilities and transportation

each generally ranged between 10 percent and 15

percent of the annual dollar volume of new money

long-term Governmental bond issues; however, in

2000, only 7.2 percent of bond proceeds were for

utilities, while 16.6 percent were for transportation.

From 1999 to 2000, the total dollar volume of transportation bonds issued grew by 33.3 percent, a substantial increase over the previous year, almost entirely offset by the 32.9 percent decrease in the total

dollar volume of utility bonds issued. This contributed

to the minimal 0.2-percent increase in the total dollar

volume of new money long-term Governmental bond

issuances between 1999 and 2000. The percentage

of new money long-term Governmental bonds issued

annually for environmental purposes decreased

between 1996 and 2002, from 8.8 percent to 5.7

percent. Bonds issued for public safety and health

and hospital comprised, on average, 3.1 percent and

2.1 percent of annual new money long-term Governmental bond issues, respectively.

New Money Issues of Long-Term Governmental

Bonds,ClassifiedbySizeofIssue

For 2002, a total of 14,312 new money long-term taxexempt Governmental bonds were issued, with

proceeds totaling $148.1 billion (Table 4). Almost 50

percent of the total number of new money long-term

Governmental bond issues were for small bonds with

an issue price of less than $1 million. These bonds

comprised only 1.6 percent of the total bond proceeds. Bonds with an issue price of less than $5

million accounted for almost 75 percent of the total

number of bond issues, but only 6.9 percent of total

bond proceeds. There were 438 bonds (3.1 percent)

with an issue price in excess of $75 million. The

combined proceeds of these bonds comprised 58.6

percent of the total money issued.

Bonds with an issue price of less than $1 million

were generally issued by smaller towns for purposes

such as school buses, fire trucks, and other unspecified expenditures. Of the issues exceeding $75

million, the top specified uses of the proceeds were

Tax-Exempt Bonds, 1996-2002

Figure B

New Money Long-Term Governmental Bonds, by Selected Purpose and Issue Year, 1996-2002

Percent of total dollar volume issued

Education

Utilities

Transportation

Environment

Public safety

Bond purpose

1996

1997

1998

1999

2000

2001

Health and

hospital

All other bonds,

combined ¹

2002

¹ For purposes of this figure, this category is comprised of "other" bonds (obligations for which a specific purpose either did not apply or was not

clearly indicated on the Form 8038-G return), as well as housing bonds, tax and revenue anticipation notes, and bond anticipation notes. These bond

purposes are broken out separately in Table 5.

for education ($18.2 billion), transportation ($15.7

billion), and utilities ($14.5 billion) [7].

New Money Issues of Governmental Bonds, ClassifiedByState

Tables 5 and 6 show how the volume of Governmental bond issues varied across the States. Figure C

presents the top 15 States, ranked by the total dollar

volume of new long-term Governmental bonds issued

between 1996 and 2002. Combined, these 15 States

accounted for 68.2 percent of the total new money

long-term bond issues during the specified period.

About $380.6 billion (50.7 percent) of the $750.7

billion of new money long-term bonds issued between 1996 and 2002 were issued in the following

eight States: California (11.7 percent), New York

(9.3 percent), Texas (8.1 percent), Illinois (5.5

percent), Florida (5.1 percent), Pennsylvania (3.9

percent), New Jersey (3.7 percent), and Michigan

(3.5 percent).

There was some variance in the purposes for

which States issued bonds. On average, between

1996 and 2002, States spent 31.0 percent of new

money long-term Governmental bond proceeds on

education. During the same period, Michigan spent

51.4 percent of its total new money long-term bond

proceeds on education, compared to the 29.5 percent

of total California bond proceeds and 15.3 percent of

total New York bond proceeds for the same purpose.

States allocated an average of 12.7 percent of total

new money long-term bond proceeds for transportation. New Jersey used the largest percentage of its

State’s total new money long-term bond issues (36.0

percent) for transportation, followed by Massachu155

Tax-Exempt Bonds, 1996-2002

Figure C

Total Volume of New Money Long-Term Governmental Bonds Issued, 1996-2002: Top 15 States, by

Selected Purpose of Bond

[Money amounts are in millions of dollars]

Selected purpose of bond

State of issue

All States..........................

California...............................

New York...............................

Texas.....................................

Illinois....................................

Florida...................................

Pennsylvania.........................

New Jersey............................

Michigan................................

Massachusetts.......................

Washington...........................

Ohio.......................................

Georgia..................................

Virginia..................................

Minnesota..............................

Colorado................................

Total

All other bonds,

Education

Transportation

Utilities

Environment

Public safety

Health and

hospital

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

750,718

87,750

69,522

60,741

41,055

38,255

29,407

27,719

26,124

23,346

20,907

20,887

18,523

16,401

16,292

15,257

232,802

25,852

10,656

29,603

13,792

12,501

12,295

8,291

13,425

2,446

4,857

7,667

5,537

5,390

5,285

4,196

95,036

5,264

14,433

5,387

2,236

3,987

2,873

9,984

1,895

5,649

2,439

3,357

2,594

2,656

1,454

2,995

85,943

17,266

8,882

10,352

1,594

6,912

1,476

344

1,372

448

3,380

1,107

2,675

1,187

826

1,729

49,422

4,011

2,793

1,394

1,587

3,637

2,167

1,111

4,884

3,361

1,123

1,295

3,546

1,121

1,086

359

23,272

2,351

1,781

1,261

812

953

907

923

564

229

652

784

852

802

434

506

15,626

2,062

3,068

613

380

680

198

143

377

490

260

199

220

602

248,586

30,943

27,909

12,131

20,654

9,585

9,642

7,044

3,785

11,070

8,080

6,187

3,059

5,046

6,988

4,870

combined

¹ For purposes of this figure, this category is comprised of "other" bonds (obligations for which a specific purpose either did not apply or was not clearly indicated on the

Form 8038-G return), as well as housing bonds, tax and revenue anticipation notes, and bond anticipation notes. These bond purposes are broken out separately in Table 5.

NOTE: Detail may not add to totals because of rounding.

156

setts and New York, which allocated 24.2 percent

and 20.8 percent of their total proceeds, respectively,

to transportation. Between 1996 and 2002, Georgia

devoted a larger portion of its new money long-term

bond proceeds (19.1 percent) to environmental

projects than any other State.

For 2002, more than half (52.8 percent) of the

$148.1 billion of new money long-term tax-exempt

bonds was issued in the following eight States: California (15.9 percent), Texas (8.4 percent), New

York (6.6 percent), Illinois (5.8 percent), Florida (5.4

percent), New Jersey (4.6 percent), Michigan (3.0

percent), and Pennsylvania (3.0 percent). According

to 2002 Census estimates, together, these eight

States accounted for 47.3 percent of the total U.S.

population [8].

Figure D presents a per capita breakdown of all

new money long-term bond issuances for 2002,

classified by State. Alaska ($952), New Jersey

($800), Connecticut ($767), Wisconsin ($719), and

South Carolina ($715) accounted for the largest

amounts of new long-term tax-exempt Governmental

bonds on a per capita basis. Montana and Wyoming

accounted for the smallest amounts of new long-term

tax-exempt Governmental bonds on both total dollar

volume and per capita bases. On a per capita basis,

Wyoming issued $130 and Montana issued $94 of

new long-term tax-exempt Governmental bonds.

Generally, Governmental bonds are not subject to the

volume cap; however, if more than $15 million of the

proceeds are used in private use or disproportionate

use, then the amount in excess of $15 million is subject to the volume cap, and issuers are required to

report the amount of the State volume cap allocated

to the Governmental issue [9]. For 2002, issuers

reported allocating a combined $169.1 million of State

volume cap to the total $340.1 billion of Governmental bond issues.

Tax-ExemptPrivateActivityBonds

TotalPrivateActivityBondVolume

Between 1996 and 2002, a total of $548.9 billion of

tax-exempt private activity bonds were issued (Table

7). Figure E illustrates the trends for the intervening

years, which follow a pattern similar to that of

Governmental bonds issued over the same period.

The dollar volume of private activity bonds issued

increased slightly between 1996 and 1997, from a low

Tax-Exempt Bonds, 1996-2002

Figure D

Figure E

Per Capita Amount of New Money Long-Term

Governmental Bonds, by State of Issue, 2002

Volume of Private-Activity Bonds Issued, by

Type and Issue Year, 1996-2002

[Money amounts are in millions of dollars, except where noted otherwise]

State of issue

Per capita

Total amount of State population amount of

(in millions) ² bonds (whole

bonds issued

dollars)

(1)

Alabama.................................

Alaska....................................

Arizona...................................

Arkansas................................

California...............................

Colorado................................

Connecticut............................

Delaware................................

District of Columbia...............

Florida....................................

Georgia..................................

Hawaii....................................

Idaho......................................

Illinois.....................................

Indiana...................................

Iowa.......................................

Kansas...................................

Kentucky................................

Louisiana...............................

Maine.....................................

Maryland................................

Massachusetts.......................

Michigan................................

Minnesota..............................

Mississippi.............................

Missouri.................................

Montana.................................

Nebraska...............................

Nevada..................................

New Hampshire.....................

New Jersey............................

New Mexico...........................

New York...............................

North Carolina........................

North Dakota..........................

Ohio.......................................

Oklahoma..............................

Oregon...................................

Pennsylvania.........................

Rhode Island..........................

South Carolina.......................

South Dakota.........................

Tennessee.............................

Texas.....................................

Utah.......................................

Vermont.................................

Virginia...................................

Washington............................

West Virginia.........................

Wisconsin..............................

Wyoming................................

2,591

610

2,615

953

23,594

2,883

2,654

282

8,022

3,957

271

8,558

2,243

912

1,169

1,015

1,591

368

1,824

4,397

4,458

2,836

656

2,247

847

1,245

447

6,858

894

9,777

2,726

210

3,625

1,092

937

4,438

561

2,936

227

1,272

12,480

1,140

215

3,058

3,522

304

3,909

(2)

4.5

0.6

5.4

2.7

35.0

4.5

3.5

0.8

0.6

16.7

8.5

1.2

1.3

12.6

6.2

2.9

2.7

4.1

4.5

1.3

5.4

6.4

10.0

5.0

2.9

5.7

0.9

1.7

2.2

1.3

8.6

1.9

19.2

8.3

0.6

11.4

3.5

12.3

1.1

4.1

0.8

5.8

21.7

2.3

0.6

7.3

6.1

1.8

5.4

0.5

Billions of dollars

100

(3)

578

952

481

352

674

641

767

350

481

463

202

680

364

311

431

248

355

284

335

686

444

564

229

396

491

574

351

800

482

511

328

331

318

313

266

360

524

715

299

220

575

491

348

420

580

168

719

130

** Data not shown to avoid disclosure of information for specific bonds when

compared to other published data.

¹ Excluding Puerto Rico and U.S. possessions.

² Population estimates were obtained from "Annual Estimates of the

Population for the United States and States, and for Puerto Rico: April 1, 2000

to July 1, 2004," (NST-EST2004-01), U.S. Census Bureau, Population Division,

Release Date: December 22, 2004.

93.0

91.6

80.9

83.5

69.9

60.1

70.0

46.5

40 31.4

41.7

37.7

50.6

42.3

45.2

33.6

49.9

47.9

32.9

32.2

28.7

28.3

1996

1997

1998

1999

2000

2001

2002

Issue year

All issues

New money issues

Refunding issues

of $60.1 billion to $69.9 billion, before climbing

sharply to $91.6 billion in 1998. The dollar volume of

bonds issued then decreased steadily in each of the

next 2 years, to $70.0 billion for 2000, before rebounding to $83.5 billion for 2001 and reaching a high

of $93.0 billion for 2002.

Over the same time frame, the fluctuation in total

issues closely mirrored that of refunding issues. The

increase in new money issues from 2000 to 2002 is

partly attributable to the increase in the State volume

cap for each of those years [5]. New money bond

issues ranged from a low of $31.4 billion for 1996 to

a high of $50.6 billion for 2002, an overall increase of

61.2 percent.

Refunding issues of tax-exempt private activity

bonds ranged from a low of $28.7 billion for 1996 to a

high of $45.2 billion for 1998. Refunding (or refinancing) issues tend to increase when interest rates

decline, as was the case during this time frame.

(Annual interest rates for the period covered are

presented in Figure A). Conversely, between 1998

and 2000, interest rates increased, and refunding

157

Tax-Exempt Bonds, 1996-2002

issues fell to $28.3 billion. The data show that issuers

of State and local bonds exercised call provisions,

allowing them to retire outstanding high-interest

bonds with new lower-interest bonds.

158

UsesofLong-TermPrivateActivityBondProceeds

For all years during the period 1996 through 2002, the

vast majority (98.6 percent) of tax-exempt private

activity bond issues were long-term (Table 7). Shortterm issues are rare, since these bonds are used to

finance capital improvement projects, which are

generally long-term in nature. Of the $93.0 billion of

tax-exempt private activity bonds issued for 2002,

$91.1 billion (98.0 percent) were long-term issues.

More than half (55.2 percent) of the total dollar

volume of long-term bond issues in 2002 were new

money issues.

During this period, section 501(c)(3) bonds,

including those issued for hospitals, accounted for

45.2 percent of the dollar volume of all long-term

private activity bond issues (Table 8). Such bonds

are used to finance the activities of charitable, educational, religious, and similar organizations recognized

as tax-exempt under section 501(c)(3) of the Internal

Revenue Code. Bonds issued for qualified residential

rental projects and qualified mortgages accounted for

another 25.7 percent of the total dollar volume issued

during the period. Qualified residential rental (also

referred to as multifamily housing) bonds help developers finance construction, acquisition, and/or rehabilitation of affordable housing projects, and qualified

mortgage bond programs assist prospective first-time

homebuyers with low and moderate incomes by

providing below-market interest rate loans and down

payment assistance.

In terms of the dollar volume of bonds issued, for

2002, the top four categories of tax-exempt private

activity bonds were section 501(c)(3) bonds (other

than those issued for hospitals), qualified mortgage

bonds, section 501(c)(3) hospital bonds, and qualified

residential rental bonds. Combined, bonds for these

four purposes represented 71.6 percent of the total

long-term private activity bond money issued in 2002.

Other uses of long-term bond proceeds in 2002

included airports (8.3 percent), certain Tax Reform

Act transition property (of which nearly 98 percent

was refunding) (6.7 percent), and student loan programs (4.4 percent).

For 2002, of the $91.1 billion of long-term taxexempt private activity bonds issued, issuers used

nearly $0.7 billion (0.7 percent) of the proceeds for

bond issuance costs, almost $0.5 billion (0.5 percent)

for credit enhancement, and $1.3 billion (1.5 percent)

for reserve fund allocations (Table 9). Of the remaining $88.6 billion, $40.2 billion were used to refund or retire prior bond issues, leaving $48.4 billion

to be used for new project costs.

New money issues of long-term tax-exempt

private activity bonds increased every year between

1996 and 2002, except for 2000, when the total dollar

volume dropped from $47.4 billion to $41.4 billion

(Table 7). In every year covered by this article,

more than half of all long-term private activity bonds

have been new money issues--this proportion has

ranged from a low of 50.8 percent in 1998 to a high

of 60.2 percent in 2001 (Figure F).

NewMoneyIssuesofPrivateActivityBonds,ClassifiedbySizeofIssue

For 2002, a total of 3,190 new money long-term taxexempt private activity bonds were issued, with

proceeds totaling $50.2 billion (Table 10). Bonds

with an issue price of less than $10 million, including

686 qualified small issue bonds (or industrial development bonds), accounted for 61.1 percent of the total

number of bond issues, but only 12.3 percent of total

bond proceeds. More than half (53.4 percent) of the

total proceeds was attributable to the 10 percent of

bonds with an issue price in excess of $50 million.

Approximately $9.6 billion in proceeds were raised

by 182 bond issues priced between $50 million and

$100 million, while another $17.3 billion were raised

by 133 bond issues, each of which exceeded $100

million. Of the issues exceeding $100 million, the top

uses of the proceeds were for section 501(c)(3)

bonds, including those issued for hospitals, ($10.2

billion), airports ($2.8 billion), mortgage bonds ($1.5

billion), and student loan bonds ($1.4 billion).

Overall, section 501(c)(3) bonds, including those

issued for hospitals, accounted for 55 percent of the

$303.5 billion of new money long-term tax-exempt

private activity bonds issued between 1996 and 2002.

In terms of dollar volume, the other primary types of

bonds issued during this same period were singlefamily mortgage bonds, including veterans’ mortgages (11.2 percent), airport bonds (8.8 percent),

Tax-Exempt Bonds, 1996-2002

Figure F

Long-Term Private Activity Bonds, by Type and Issue Year, 1996-2002

[Money amounts are in billions of dollars]

Percent of total

100%

90%

80%

$28.4

$31.6

$44.9

$31.3

$37.6

$46.3

1996

1997

1998

$31.9

$27.7

$32.7

$47.4

$41.4

$49.4

1999

2000

2001

$40.8

70%

60%

50%

40%

30%

$50.2

20%

10%

2002

Issue year

New money issues

residential rental bonds (8.3 percent), and small issue

bonds (5.6 percent). For 2002, the top uses of new

money proceeds included section 501(c)(3) projects

(58.1 percent), residential rental bonds (11.7 percent), and single-family mortgages (9.2 percent)

(Figure G).

NewMoneyIssuesofPrivateActivityBonds,ClassifiedbyState

During the period covered, the volume of new money

long-term tax-exempt private activity bonds issued

varied across the States (Tables 11 and 12). Figure

H presents the top 15 States, ranked by the total

dollar volume of new money long-term issues between 1996 and 2002. These 15 States accounted

for 65.5 percent of the total new money long-term

bond issues during the specified period. About

$153.8 billion (50.7 percent) of the $303.5 billion of

new money long-term bonds issued between 1996

and 2002 were issued in the following nine States:

California (8.9 percent), New York (7.5 percent),

Texas (6.9 percent), Florida (6.0 percent), Pennsyl-

Refunding issues

vania (5.9 percent), Illinois (4.6 percent), Ohio (4.0

percent), Massachusetts (3.7 percent), and Michigan

(3.2 percent).

Texas alone accounted for 10.3 percent of all

new money long-term student loan bonds and 12.1

percent of all new money long-term solid waste

bonds issued between 1996 and 2002. In addition,

Texas, one of only five States eligible to issue veterans’ mortgage bonds, accounted for 40.2 percent of

the total dollar volume for these types of issues [10].

Together, Michigan, Pennsylvania, and Illinois accounted for almost one-fourth of all new money longterm small-issue bonds issued during the same period.

For a majority of States, more than half of all new

money long-term issues were used to finance section

501(c)(3) projects, including hospitals.

For 2002, more than half (52.7 percent) of the

$50.2 billion of new money long-term tax-exempt

private activity bonds were issued in the following

nine States: California (10.2 percent), Texas (7.8

percent), New York (7.7 percent), Pennsylvania (6.2

percent), Florida (5.5 percent), Massachusetts (4.6

159

Tax-Exempt Bonds, 1996-2002

Figure G

Long-Term Private Activity Bonds, by Issue Year, Type, and Selected Purpose of Bond, 1996-2002

[Money amounts are in millions of dollars]

Issue year

Type of issue and purpose of bond

1996

(1)

1997

(2)

1998

(3)

1999

(4)

2000

(5)

2001

(6)

2002

(7)

All issues.............................................................................

59,665

69,101

91,167

79,262

69,048

82,054

91,097

Bond purpose, as a percent of total money issued:

Total....................................................................................

Other section 501(c)(3) (excluding hospitals)........................

Mortgage...............................................................................

Section 501(c)(3) hospital......................................................

Residential rental...................................................................

Airport....................................................................................

Tax Reform Act transition property........................................

Student loan...........................................................................

Solid waste disposal..............................................................

Docks and wharves...............................................................

All other bonds, combined ¹...................................................

100.0

18.0

17.6

20.1

11.3

7.5

6.0

3.1

5.3

2.4

8.8

100.0

19.2

16.1

23.8

7.9

8.0

5.1

3.2

4.9

1.8

10.1

100.0

24.6

13.1

28.1

7.6

7.7

4.6

2.7

4.4

1.3

5.9

100.0

27.8

17.2

19.4

9.2

7.1

5.6

2.9

3.5

1.4

6.0

100.0

28.8

19.4

14.7

8.6

8.1

4.4

3.5

4.2

1.5

6.8

100.0

28.7

17.2

16.3

8.4

10.7

4.8

3.2

4.2

0.9

5.6

100.0

27.3

17.4

16.6

10.2

8.3

6.7

4.4

3.1

1.5

4.5

New money issues..............................................................

31,262

37,550

46,288

47,408

41,392

49,356

50,248

Total....................................................................................

100.0

Other section 501(c)(3) (excluding hospitals)........................

23.2

Mortgage...............................................................................

15.5

Section 501(c)(3) hospital......................................................

20.8

Residential rental...................................................................

6.2

Airport....................................................................................

8.8

Student loan...........................................................................

4.4

Solid waste disposal..............................................................

5.3

Docks and wharves...............................................................

3.5

Small issue............................................................................

8.8

All other bonds, combined ¹...................................................

3.6

¹ Data for other bond purposes are broken out separately in Table 8.

100.0

23.2

13.6

23.6

7.2

10.1

4.1

4.8

1.8

7.8

3.8

100.0

29.0

9.1

29.9

6.5

10.0

2.9

3.5

1.0

6.5

1.6

100.0

37.0

9.3

22.7

8.2

8.0

2.9

3.2

1.3

6.0

1.3

100.0

38.6

12.0

15.7

8.8

7.1

3.6

2.3

6.4

2.0

100.0

38.0

9.5

19.3

8.7

10.9

3.6

3.4

0.7

3.7

2.1

100.0

38.3

9.2

19.9

11.7

6.9

5.1

3.4

1.4

2.0

2.3

Bond purpose, as a percent of total new money issued:

160

NOTE: Detail may not add to 100 percent because of rounding.

160

percent), Illinois (3.8 percent), Georgia (3.6 percent),

and Ohio (3.2 percent). According to 2002 Census

estimates, together, these nine States accounted for

50.0 percent of the total U.S. population [8].

Most new money private activity bond issues

were subject to State volume cap limitations determined by population [5]. States have leeway in

allocating the cap among the various qualified purposes subject to the cap. Private activity bonds not

subject to the unified State volume cap included all

new money issues for airports, docks and wharves,

Governmentally-owned solid waste facilities, hydroelectric generating facilities, and high-speed intercity

rail facilities. Current refunding bonds are not figured

into the total for the cap, as long as there is no increase in the principal amount of the outstanding

bond. In addition, carryforward rules allow States to

apply any unused amount of the cap to certain types

of new money issues up to 3 years into the future.

For this reason, it is legitimately possible for a State

to issue new money bonds in an amount that exceeds

its cap for a given year. Section 501(c)(3) bonds

(other than qualified hospital bonds) were subject to a

separate cap of $150 million per organization. Qualified veterans’ mortgage bonds were subject to their

own special volume limitations, as were empowerment zone facility bonds and qualified public educational facility bonds.

Summary

Tax-exempt Governmental bond volume almost

doubled during the 7-year period extending from 1996

through 2002, from $171.7 billion issued for 1996 to

$340.1 billion for 2002. A total of $1.5 trillion of

Governmental bonds were issued during this time

frame. Long-term issues, bonds with maturities of 13

months or more, made up 80 percent of this total.

Almost half (48.9 percent) of total Governmental

Tax-Exempt Bonds, 1996-2002

Figure H

Total New Money Long-Term Private Activity Bonds Issued, 1996-2002: Top 15 States,

by Selected Purpose of Bond

[Money amounts are in millions of dollars]

Selected purpose of bond

State of issue

Total

(1)

All States................... 303,504

California............................ 27,022

New York............................ 22,668

Texas.................................. 21,078

Florida................................

18,164

Pennsylvania...................... 17,828

Illinois................................. 14,027

Ohio.................................... 12,276

Massachusetts...................

11,128

Michigan.............................

9,613

New Jersey.........................

8,892

Georgia..............................

8,852

Virginia...............................

7,110

Minnesota...........................

6,833

Tennessee..........................

6,790

Missouri..............................

6,643

(2)

Section

501(c)(3)

hospital

(3)

100,952

7,851

10,151

5,657

5,625

7,056

4,734

3,764

5,588

1,990

2,861

3,756

2,276

3,383

2,588

3,149

65,994

3,589

2,644

3,957

4,044

5,368

3,718

4,223

1,913

3,299

1,960

1,883

1,654

1,164

1,895

1,292

Other section

501(c)(3) ¹

Mortgage

Airport

Residential

rental

Small issue

Student loan

Solid waste

disposal

(4)

(5)

(6)

(7)

(8)

(9)

32,883

2,704

1,327

2,203

1,404

1,281

1,512

1,204

332

244

261

330

800

612

572

26,697

2,660

3,642

3,716

2,386

910

1,836

406

1,070

1,196

992

371

712

618

513

344

25,331

5,873

3,238

1,194

2,263

199

432

743

765

429

586

1,112

979

415

161

396

17,030

660

840

321

459

1,361

1,178

787

591

1,525

517

687

522

339

365

284

11,474

579

1,177

-550

434

650

651

801

-**

416

302

11,447

939

516

1,385

572

694

385

639

123

209

344

494

417

**Data not shown to avoid disclosure about specific bonds. However, the data are included in the appropriate totals.

¹ This category includes section 501(c)(3) bonds issued for exempt organizations other than hospitals.

bond proceeds issued during this period were new

money long-term issues. Bonds to refund prior

Governmental issues accounted for 33.4 percent of

the total $1.5 trillion issued between 1996 and 2002.

More than half of all long-term Governmental bonds

issued during this period were to finance projects

related to education, transportation, and utilities.

Education bonds alone made up 28.1 percent of all

long-term Governmental bond issues.

Between 1996 and 2002, tax-exempt private

activity bond issues increased 54.8 percent, from

$60.1 billion to $93.0 billion. There was a decrease in

overall issuance between 1998 and 2000, but the

period between 2000 and 2002 was one of rapid

growth in tax-exempt private activity bond issuance.

A total of $548.9 billion in new money and refunding

tax-exempt private activity bonds was issued between 1996 and 2002, of which $541.4 billion were

long-term in nature. Refunding issues accounted for

44.3 percent of the total amount issued. Bonds

issued for use by section 501(c)(3) organizations and

those to promote the development and purchase of

affordable housing (through residential rental and

single-family mortgage bonds) accounted for 70.9

percent of all long-term private activity bonds issued

during this period.

DataSourcesandLimitations

The data presented in this article are based on the

populations of Forms 8038, Information Return for

Tax-Exempt Private Activity Bond Issues, and

Forms 8038-G, Information Return for Tax-Exempt

Governmental Obligations, filed with the Internal

Revenue Service for bonds issued during each of the

Calendar Years 1996 through 2002. Bond issuers

were required to file these returns by the 15th day of

the second calendar month after the close of the

calendar quarter in which the bond was issued. The

data do not include Form 8038-G returns with a total

issue price less than $100,000, since issuers of these

bonds are instructed to file Form 8038-GC, Information Return for Small Tax-Exempt Governmental

Bond Issues, Leases, and Installment Sales.

Because the entire populations of both Forms 8038

and Forms 8038-G were used, there is no sampling

error. Returns filed for commercial paper transactions are excluded from the statistics, as are issues

that are loans from the proceeds of another taxexempt issue (pooled financings).

During statistical processing, returns were subject to thorough testing and correction procedures to

ensure accuracy and validity. Further checks were

conducted to identify and exclude duplicate and

161

Tax-Exempt Bonds, 1996-2002

amended returns. In some instances, returns with

incomplete information, mathematical errors, or other

reporting anomalies were edited to resolve internal

inconsistencies. In other cases, it was not possible to

reconcile reporting discrepancies. Thus, a certain

amount of nonsampling error may remain.

ExplanationofSelectedTerms

162

Allocation to Reserve Fund.--Proceeds that are

placed in reserve to be used to pay debt service if

pledged revenues are insufficient to satisfy the debt

service requirements. The amount deposited into a

reserve or replacement fund may not exceed 10

percent of the proceeds of an issue.

Bond Issuance Costs.--Issuance costs include

fees paid for trustees, bond counsel, and underwriters' discount. Issuance costs paid out of private

activity bond proceeds generally may not exceed 2

percent of the proceeds.

Commercial Paper.--Commercial paper consists

of short-term notes that are continually rolled over.

Maturities range up to 270 days but average about 30

days. Many localities use commercial paper to raise

cash needed for current transactions.

Credit Enhancement.--Fees paid for items such

as bond insurance premiums and letters-of-credit fees.

Exempt Facility Bond.--Bond issue of which 95

percent or more of the net proceeds are used to

finance a tax-exempt facility (as listed in Code sections 142(a)(1) through (13) and 142(k)). These

facilities comprise airports, docks and wharves, mass

commuting facilities, facilities for the furnishing of

water, sewage facilities, solid waste disposal facilities, qualified residential rental projects, facilities for

the local furnishing of electric energy or gas, local

district heating or cooling facilities, qualified hazardous waste facilities, high-speed intercity rail facilities,

environmental enhancements of hydroelectric generating facilities, and qualified public educational facilities. The Revenue Reconciliation Act of 1993 created a new category of bonds, qualified enterprise

zone facility bonds, that may be issued for certain

businesses in “empowerment zones” or “enterprise

communities.” Empowerment Zone and Enterprise

Community designations are made by the Secretaries

of Agriculture and Housing and Urban Development

and last for a 10-year period. The Taxpayer Relief

Act of 1997 provided certain economically depressed

census tracts within the District of Columbia designa-

tion as the “D.C. Enterprise Zone.” Qualified enterprise zone facility bonds are generally subject to the

same rules as exempt facility bonds. The Job Creation and Worker Assistance Act of 2002 created

section 1400L of the Internal Revenue Code of 1986

to provide various tax benefits for the area of New

York City damaged or affected by the terrorist attack

on September 11, 2001. Section 1400L(d) authorizes

the issuance of “Liberty Bonds,” which are subject to

the following additional requirements: (a) 95 percent

or more of the net proceeds of such issue must be

used for qualified project costs; (b) the bond must be

issued by the State of New York or any political

subdivision thereof; (c) the Governor of the State of

New York or the Mayor of the City of New York

must designate the bond for purposes of section

1400L(d); and (d) the bond must be issued after

March 9, 2002, and before January 1, 2005. The

maximum aggregate face amount of bonds that may

be designated as Liberty Bonds is $8 billion.

Governmental Bond.--Any obligation issued by

a State or local government unit that is not a private

activity bond (see below). The interest on a Governmental bond is excluded from gross income under

section 103 of the Internal Revenue Code.

Mortgage Bond.--Bond issue of which the

proceeds (except issuance costs and reasonably

required reserves) are used to provide mortgage

financing for single-family residential property which

is occupied by the owner as his/her principal residence, and which meets the additional requirements

in Internal Revenue Code section 143.

Nongovernmental Output Property Bond.-Bond issue of which the proceeds are used to finance

the acquisition of property used by a nongovernmental entity in connection with an output facility (such as

an electric or gas power project). This bond must

meet additional tests under Internal Revenue Code

section 141(d).

Pooled Financing.--An arrangement whereby a

portion of the proceeds of a Governmental bond issue

are used to make loans to other Governmental units.

Private Activity Bond.--Bond issue of which

more than 10 percent of the proceeds is used for any

private business use, and more than 10 percent of the

payment of the principal or interest is either secured

by an interest in property to be used for private

business use (or payment for such property), or is

derived from payments for property (or borrowed

Tax-Exempt Bonds, 1996-2002

money) used for a private business use. A bond is

also considered a private activity bond if the amount

of the proceeds used to make or finance loans (other

than loans described in Internal Revenue Code section 141(c)(2)) to persons other than Governmental

units exceeds the lesser of 5 percent of the proceeds

or $5 million.

Redevelopment Bond.--Bond issue of which 95

percent or more of the net proceeds is used to finance certain specified real property acquisition and

redevelopment in blighted areas (see Internal Revenue Code section 144(c) for additional requirements).

Section 501(c)(3) Bond.--Bonds issued by State

and local governments to finance the activities of

charitable, educational, hospital, and similar organizations that are tax-exempt under Internal Revenue

Code section 501(c)(3). A bond must meet the

following conditions to be classified as a section

501(c)(3) bond: 1) all property financed by the net

proceeds of the bond issue is to be owned by a section 501(c)(3) organization or a Governmental unit,

and 2) the bond would not be a private activity bond

if section 501(c)(3) organizations were treated as

Governmental units with respect to their activities

that are not related trades or businesses, and the

private activity bond definition was applied using a 5percent threshold rather than a 10-percent threshold.

The primary beneficiaries of these bonds are private,

nonprofit hospitals, colleges, and universities. A

section 501(c)(3) hospital bond issue is one in which

95 percent or more of the net proceeds is to be used

for a hospital. The category of bond issues referred

to as “other section 501(c)(3)” includes bond issues

that are not related to hospitals.

Small Issue Bond.--Bond issue generally not

exceeding $1 million, and of which 95 percent or

more of the net proceeds is used to finance the

acquisition of land and depreciable property or to

refund such issues. In certain instances, an election

to take certain capital expenditures into account can

increase the limit on bond size, from $1 million to $10

million. These bonds may only be used to finance

manufacturing facilities and to benefit certain firsttime farmers.

Student Loan Bond.--Bond issue of which 90

percent or more of the net proceeds is used to make

or finance student loans under a program of general

application to which the Higher Education Act of

1965 applies (see Internal Revenue Code section

144(b)(1)(A) for additional requirements), or of

which 95 percent or more of the net proceeds is used

to make or finance student loans under a program of

general application approved by the State (see Code

section 144(b)(1)(B) for additional requirements).

Tax Reform Act Transition Property Bond.--A

bond issued under transitional rules contained in the

Tax Reform Act of 1986. Proceeds from bonds

issued under these rules include issues used to fund

items such as pollution control facilities, parking

facilities, industrial parks, sports stadiums, and convention facilities. Proceeds from other bonds issued

under the transitional rules are included in this category only if they could not be identified as another

issue type.

U.S. Possessions Other Than Puerto Rico.-The Virgin Islands, Guam, and the Northern Mariana

Islands comprise this category in the tables classified

by State.

Veterans’ Mortgage Bond.--In general, a bond

issue of which 95 percent or more of the net proceeds is used to provide residences for veterans.

The payment of interest and principal must be secured by a general obligation of the State, and the

bond must meet certain of the requirements of Internal Revenue Code section 143. The States that may

issue veteran’s mortgage bonds are Alaska, California, Oregon, Texas, and Wisconsin.

NotesandReferences

Additional tax-exempt bond data for each of the 7

years covered in this article, including data by type of

issue, State, size of issue, and uses of proceeds, can

be found on the SOI Web site: <http://www.irs.gov/

taxstats>. (Click on “Tax-Exempt Bonds.”)

[1] Revenue loss estimates are from the Budget of

the United States Government, Detailed

Functional Tables, Fiscal Year 2002, Table 22-4:

Tax Expenditures by Function <http://

www.gpoaccess.gov/usbudget/fy02/sheets/

fct_4.xls>.

[2] The term “State” includes the District of Columbia and any possession of the United States.

[3] Par is defined as 100 percent of the face value

of the bond. Reported in Bond Basics, <http://

163

Tax-Exempt Bonds, 1996-2002

www.bondmarkets.com/assets/files/

Bond_Basics.pdf >, Bond Markets Association,

June 2004, p. 24.

164

[4] The Job Creation and Worker Assistance Act

of 2002 (Public Law 107-47) included changes

to tax-exempt bond law intended to provide

recovery assistance to businesses in the New

York City area in the aftermath of the terrorist

attacks of September 11, 2001. Specifically, the

new law allowed for an additional advance

refunding for certain bonds that had already

been advance refunded prior to September 12,

2001. The refunding bonds must have been

outstanding on September 11, 2001, and at least

90 percent (95 percent for 501(c)(3) bonds) of

the facilities financed under the original issue

must have been located within the area designated as the “New York Liberty Zone.” (Certain facilities located outside New York City

were also deemed eligible.) Qualified bonds

were designated by the Governor of New York

or the Mayor of New York City as “liberty

advance refunding bonds.” The provision was

effective for bonds issued after March 9, 2002,

and before January 1, 2005. See Internal

Revenue Service Notice 2002-42, 2002-27

Internal Revenue Bulletin 36 for additional

information.

[5] The annual unified State volume cap for 1996

through 2000 was equal to the greater of $50

per capita or $150 million (calculated using the

U.S. Census Bureau State population estimates). The Omnibus Spending and Tax

Package passed in December 2000 included an

increase in the State volume cap allocations.

For 2001, the volume cap was the greater of

$62.50 per capita or $187.5 million; for 2002, the

volume cap was the greater of $75 per capita or

$225 million. Starting January 1, 2003, the

volume cap was indexed for inflation. Volume

caps for U.S. possessions, with the exception of

Puerto Rico, are determined under Internal

Revenue Code section 146(d)(4).

[6] Obtained from the Federal Reserve Board,

“Federal Statistical Release H.15: Selected

Interest Rates, Historical Data” <http://

www.federalreserve.gov/releases/H15/data/m/

slbond.txt>.

[7] For purposes of this discussion and in Table 4,

the category “other bonds,” which includes all

issues for which a specific purpose either did

not apply or was not clearly indicated on the

Form 8038-G return, accounted for $29.5 billion

of the total new money long-term Governmental

bond issues in excess of $75 million for 2002.

[8] Population estimates were obtained from

“Annual Estimates of the Population for the

United States and States, and for Puerto Rico:

April 1, 2000 to July 1, 2004,” (NST-EST200401), U.S. Census Bureau, Population Division,

Release Date: December 22, 2004.

[9] Internal Revenue Code Section 141(b)(5) states

that a Governmental bond will be treated as a

private activity bond if: (1) the “nonqualified

amount” exceeds $15 million, but is less than

the amount needed to meet any of the private

activity bond tests; and (b) the issuer does not

allocate a portion of its volume cap to the issue

in an amount equal to the excess of such

nonqualified amount over $15 million.

[10] The issuance of qualified veterans’ mortgage

bonds was limited to the following five states:

Alaska, California, Oregon, Texas, and

Wisconsin.

Source: IRS Statistics of Income Bulletin,

Summer 2005, Publication 1136 (Rev. 09-2005.)

164

Tax-Exempt Bonds, 1996-2002

Table 1.--Volume of Governmental Bonds by Type, Term, and Issue Year, 1996-2002

[Money amounts are in millions of dollars]

All years

Type and term of issue

1996

Issue year

1997

Number

Amount

(5)

(6)

Number

(1)

Amount

(2)

Number

(3)

Amount

(4)

All issues, total.............................................

Short-term..................................................

Long-term...................................................

178,524

57,848

120,676

1,535,559

311,692

1,223,866

24,385

8,610

15,775

171,710

45,176

126,533

24,330

8,368

15,962

New money issues, total.............................

Short-term..................................................

Long-term...................................................

144,530

44,475

100,055

1,022,584

271,866

750,718

19,811

6,436

13,375

119,316

40,571

78,745

Refunding issues, total...............................

Short-term..................................................

Long-term...................................................

48,123

17,266

30,857

512,975

39,826

473,149

6,289

2,616

3,673

52,393

4,605

47,788

1998

Number

(7)

Amount

(8)

179,484

37,770

141,715

27,761

8,184

19,577

227,002

32,519

194,483

19,647

6,366

13,281

117,187

33,374

83,813

21,737

6,326

15,411

136,817

27,762

109,055

6,531

2,538

3,993

62,297

4,396

57,901

8,418

2,430

5,988

90,185

4,757

85,428

Issue year--continued

Type and term of issue

1999

2000

2001

2002

Number

(9)

Amount

(10)

Number

(11)

Amount

(12)

Number

(13)

Amount

(14)

Number

(15)

Amount

(16)

All issues, total.............................................

Short-term..................................................

Long-term...................................................

25,897

8,353

17,544

183,695

34,956

148,739

23,869

8,339

15,530

169,343

37,407

131,936

25,909

8,273

17,636

264,270

59,466

204,803

26,373

7,721

18,652

340,055

64,398

275,657

New money issues, total.............................

Short-term..................................................

Long-term...................................................

21,634

6,533

15,101

133,187

30,118

103,069

20,738

6,466

14,272

134,862

31,558

103,305

20,682

6,379

14,303

176,838

52,209

124,629

20,281

5,969

14,312

204,376

56,274

148,101

Refunding issues, total...............................

Short-term..................................................

Long-term...................................................

6,311

2,369

3,942

50,508

4,838

45,670

4,706

2,458

2,248

34,481

5,850

28,631

7,369

2,510

4,859

87,431

7,257

80,174

8,499

2,345

6,154

135,679

8,123

127,556

NOTE: Detail may not add to totals because of rounding.

165

Tax-Exempt Bonds, 1996-2002

Table 2.--Long-Term Governmental Bonds, by Purpose of Bond and Issue Year, 1996-2002

[Money amounts are in millions of dollars]

All years

All issues

Purpose of bond

1996

New money issues

All issues

New money issues

Number

Amount

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

1,223,866

344,439

23,645

156,691

34,879

87,161

6,937

174,420

17,029

378,607

100,055

33,362

2,269

7,040

14,232

8,428

870

10,036

1,839

28,548

750,718

232,802

15,626

95,036

23,272

49,422

4,904

85,943

16,116

227,566

15,775

5,321

369

1,084

1,957

1,742

150

1,879

284

4,114

126,533

34,411

3,169

12,381

4,496

11,166

745

16,933

3,088

40,111

13,375

4,629

318

925

1,848

1,314

124

1,373

262

3,506

78,745

24,956

2,120

8,232

3,216

6,901

553

7,050

2,880

22,834

Total.............................................................................. 120,676

Education..........................................................................

40,468

Health and hospital...........................................................

2,635

8,317

Transportation...................................................................

Public safety.....................................................................

15,212

Environment......................................................................

11,192

Housing.............................................................................

1,093

Utilities..............................................................................

13,888

1,962

Bond and tax/revenue anticipation notes……………………

Other bonds ¹....................................................................

34,142

1997

All issues

Purpose of bond

Total..............................................................................

Education……………………………………………..………

Health and hospital……………………………………………

Transportation………….………………………………........

Public safety……………………………………………….....

Environment………………………………………………….

Housing…………………………………………………….....

Utilities……………….…………………………………………

Bond and tax/revenue anticipation notes……………………

Other bonds ¹....................................................................

166

1998

New money issues

All issues

New money issues

Number

Amount

Number

Amount

Number

Amount

Number

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

15,962

5,376

365

1,173

1,941

1,580

132

1,877

267

4,358

141,715

38,506

3,609

18,516

3,296

12,061

710

18,509

2,661

43,848

13,281

4,558

306

971

1,802

1,201

106

1,367

253

3,629

83,813

27,684

1,655

9,824

2,350

6,143

374

8,023

2,585

25,175

19,577

6,823

417

1,289

2,274

1,810

194

2,242

305

5,459

194,483

52,227

4,147

24,626

5,751

13,904

1,301

32,335

2,992

57,190

15,411

5,272

328

1,072

2,104

1,293

139

1,490

280

4,389

109,055

31,677

2,415

14,710

3,432

7,333

544

16,195

2,927

29,813

Amount

2000

1999

All issues

Purpose of bond

New money issues

All issues

New money issues

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(17)

(18)

(19)

(20)

(21)

(22)

(23)

(24)

Total..............................................................................

17,544

148,739

15,101

103,069

15,530

131,936

14,272

103,305

Education……………………………………………..………

Health and hospital……………………………………………

Transportation………….………………………………........

Public safety……………………………………………….....

Environment………………………………………………….

Housing…………………………………………………….....

Utilities……………….…………………………………………

Bond and tax/revenue anticipation notes……………………

Other bonds ¹....................................................................

5,559

382

1,320

2,318

1,654

153

2,045

291

4,982

42,579

3,030

17,637

5,274

9,560

771

18,531

3,124

48,230

4,828

336

1,140

2,205

1,304

121

1,536

275

4,310

31,340

1,794

12,894

3,817

6,488

627

11,086

3,033

31,987

5,138

315

1,126

2,146

1,321

143

1,597

326

4,455

41,214

1,633

20,530

4,277

9,054

771

13,393

2,714

38,350

4,778

297

1,008

2,086

1,107

123

1,354

314

4,079

32,136

1,291

17,186

3,494

6,931

586

7,436

2,666

31,577

2001

All issues

Purpose of bond

2002

New money issues

All issues

New money issues

Number

Amount

Number

Amount

Number

Amount

Number

(25)

(26)

(27)

(28)

(29)

(30)

(31)

(32)

Total..............................................................................

17,636

204,803

14,303

124,629

18,652

275,657

14,312

148,101

Education……………………………………………..………

Health and hospital……………………………………………

Transportation………….………………………………........

Public safety……………………………………………….....

Environment………………………………………………….

Housing…………………………………………………….....

Utilities……………….…………………………………………

Bond and tax/revenue anticipation notes……………………

Other bonds ¹....................................................................

5,995

364

1,175

2,218

1,497

153

2,040

250

5,181

61,507

3,227

21,393

5,392

12,846

1,392

32,564

1,303

65,162

4,708

334

979

2,037

1,089

128

1,453

226

4,256

40,004

2,892

13,925

2,909

7,242

1,320

15,619

964

39,736

6,256

423

1,150

2,358

1,588

168

2,208

239

5,593

73,996

4,831

41,608

6,392

18,570

1,246

42,155

1,147

85,716

4,589

350

945

2,150

1,120

129

1,463

229

4,379

45,005

3,459

18,265

4,054

8,383

900

20,534

1,061

46,443

¹ For purposes of this table, "other" bonds refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return.

166

Amount

NOTE: Detail may not add to totals because of rounding.

Amount

Tax-Exempt Bonds, 1996-2002

Table 3.--Computation of Lendable Proceeds for Long-Term Governmental Bonds, by Purpose of

Bond, 2002

[Money amounts are in millions of dollars]

Entire issue

Bond issuance

Credit

Allocation to

price

costs

enhancement

reserve fund

Purpose of bond

Total............................................................

Education........................................................

Health and hospital.........................................

Transportation.................................................

Public safety...................................................

Environment....................................................

Housing...........................................................

Utilities............................................................

Bond and tax/revenue anticipation notes........

Other bonds ¹..................................................

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

18,652

6,256

423

1,150

2,358

1,588

168

2,208

239

5,593

275,657

73,996

4,831

41,608

6,392

18,570

1,246

42,155

1,147

85,716

12,158

4,285

237

845

848

1,160

101

1,808

169

3,954

2,563

691

386

178

417

749

5,099

2,224

301

315

431

748

1,503

1,069

152

205

310

277

1,386

247

146

353

461

3,693

342

155

445

209

1,358

1,112

Total lendable

Proceeds used to

Nonrefunding

proceeds

refund prior issues

proceeds

Purpose of bond

Number

Amount

Number

Amount

Number

(9)

(10)

(11)

(12)

(13)

Amount

(14)

Total...........................................................................................................

Education........................................................................................................

Health and hospital.........................................................................................

Transportation................................................................................................

Public safety...................................................................................................

Environment...................................................................................................

Housing..........................................................................................................

18,652

6,256

423

1,150

2,358

1,588

168

268,333

72,811

4,579

40,573

6,248

18,119

1,215

6,154

2,247

117

378

375

726

124,962

28,637

1,309

22,921

2,289

9,986

340

14,312

4,589

350

945

2,150

1,120

129

143,371

44,173

3,269

17,652

3,959

8,133

876

Utilities............................................................................................................

Bond and tax/revenue anticipation notes........................................................

Other bonds ¹..................................................................................................

2,208

239

5,593

40,069

1,144

83,578

1,074

1,952

20,745

38,649

1,463

229

4,379

19,324

1,058

44,930

**Data not shown to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals.

¹ For purposes of this table, "other" bonds refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return.

NOTE: Detail may not add to totals because of rounding.

167

Tax-Exempt Bonds, 1996-2002

Table 4.--New Money Long-Term Governmental Bonds, by Purpose of Bond and Size of Issue, 2002

[Money amounts are in millions of dollars, except for size of issue, which is in whole dollars]

Size of issue

$500,000

All issues

Purpose of bond

$1,000,000

Under

under

$500,000

$1,000,000

$5,000,000

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Total...........................................................

14,312

148,101

5,194

1,212

1,759

1,191

3,523

7,847

Education........................................................

4,589

45,005

1,397

331

497

342

1,045

2,312

Health and hospital.........................................

350

3,459

103

210

Transportation................................................

945

18,265

289

112

262

462

Public safety...................................................

2,150

4,054

1,337

292

237

154

313

537

Environment...................................................

1,120

8,383

315

135

343

612

Housing..........................................................

129

900

Utilities............................................................

1,463

20,534

329

196

123

464

894

Tax/revenue anticipation notes.......................

726

122

Bond anticipation notes..................................

Other bonds ¹..................................................

157

4,379

335

46,443

1,424

333

518

343

1,183

2,507

Size of issue--continued

$5,000,000

$10,000,000

$25,000,000

under

$10,000,000

$25,000,000

$75,000,000

Purpose of bond

168

$75,000,000

Number

Amount

Number

Amount

Number

Amount

Number

(9)

(10)

(11)

(12)

(13)

(14)

(15)

Amount

Total...........................................................

1,494

9,267

1,142

15,325

762

26,418

438

86,841

Education........................................................

589

3,746

540

7,184

373

12,882

148

18,208

Health and hospital.........................................

191

305

849

1,845

Transportation................................................

321

539

1,068

15,748

(16)

Public safety...................................................

120

532

641

783

1,114

Environment...................................................

119

514

672

1,196

5,231

Housing..........................................................

117

238

344

Utilities............................................................

202

1,100

120

1,446

2,382

14,508

Tax/revenue anticipation notes.......................

Bond anticipation notes..................................

Other bonds ¹..................................................

493

2,643

366

4,298

249

6,859

146

29,459

**Data not shown to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals.

¹ For purposes of this table, "other" bonds refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return.

NOTE: Detail may not add to totals because of rounding.

168

Tax-Exempt Bonds, 1996-2002

Table 5.--Total New Money Long-Term Governmental Bonds, by State of Issue and Purpose,

1996-2002

[Money amounts are in millions of dollars]

Purpose of bond

Total

State of Issue

Education

Health and hospital

Transportation

Public safety

Environment

Number

Amount

Number

Amount

Number

Amount

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

750,718

11,199

3,212

12,122

4,156

87,750

15,257

12,416

1,847

2,790

38,255

18,523

4,345

1,493

41,055

11,992

5,470

7,192

7,692

8,785

1,868

9,082

23,346

26,124

16,292

5,332

11,380

858

4,626

9,507

2,104

27,719

5,051

69,522

15,182

1,266

20,887

6,296

8,729

29,407

2,354

12,235

1,023

10,651

60,741

5,460

882

16,401

20,907

2,090

15,255

485

11,247

33,362

385

657

821

3,749

453

378

336

492

157

2,527

1,027

590

501

536

304

302

284

620

1,476

713

501

832

147

397

158

1,422

326

2,146

411

206

1,029

1,219

371

1,525

407

143

312

2,679

220

550

504

979

157

232,802

3,139

847

4,659

1,791

25,852

4,196

2,976

440

12,501

5,537

249

849

13,792

6,138

1,750

2,754

1,958

2,169

432

3,025

2,446

13,425

5,285

1,615

3,915

319

1,177

2,822

581

8,291

1,370

10,656

7,029

281

7,667

2,178

3,598

12,295

438

4,229

555

2,360

29,603

1,457

182

5,390

4,857

429

2,838

187

204

2,269

184

131

-29

15,626

729

2,062

602

680

260

380

392

155

183

411

146

143

198

220

288

379

3,068

389

490

253

294

1,051

290

613

128

-199

377

378

7,040

101

148

355

131

210

175

277

144

295

322

130

111

158

340

253

109

203

173

242

122

209

189

349

113

133

145

729

95,036

386

206

1,930

708

5,264

2,995

1,550

564

3,987

2,594

2,236

797

321

1,079

373

942

269

880

5,649

1,895

1,454

276

2,655

119

1,406

279

9,984

1,262

14,433

764

3,357

1,240

801

2,873

319

2,153

100

5,387

1,279

2,656

2,439

584

1,546

2,415

14,232

284

227

781

383

201

547

277

117

485

453

212

163

240

382

132

272

269

436

242

155

371

170

468

118

720

1,003

459

120

191

757

377

214

834

127

338

314

315

516

23,272

293

248

229

2,351

506

186

953

852

150

812

738

191

206

436

469

589

229

564

434

262

719

173

449

923

175

1,781

680

784

291

557

907

105

248

276

1,261

236

802

652

264

854

8,428

377

108

158

436

209

237

321

233

143

142

260

821

297

184

180

200

215

143

665

425

120

116

126

168

104

718

49,422

1,100

529

254

4,011

359

124

163

3,637

3,546

197

1,587

1,441

600

613

641

644

131

631

3,361

4,884

1,086

962

1,589

1,111

180

2,793

1,063

165

1,295

629

2,167

367

356

278

1,394

220

1,121

1,123

205

2,048

161

857

All States....................... 100,055

Alabama.............................

1,867

Alaska................................

226

Arizona...............................

1,633

Arkansas............................

1,385

California............................

8,393

Colorado............................

2,140

Connecticut........................

775

Delaware............................

246

District of Columbia............

Florida................................

2,487

Georgia..............................

2,122

Hawaii................................

138

Idaho..................................

733

Illinois.................................

5,576

Indiana...............................

2,589

Iowa...................................

2,229

Kansas...............................

1,950

Kentucky............................

1,440

Louisiana............................

1,539

Maine.................................

717

Maryland............................

974

Massachusetts...................

1,454

Michigan.............................

4,542

Minnesota..........................

4,051

Mississippi.........................

1,617

Missouri.............................

2,344

Montana.............................

472

Nebraska............................

3,161

Nevada...............................

400

New Hampshire.................

418

New Jersey........................

2,618

New Mexico.......................

833

New York...........................

4,248

North Carolina....................

2,749

North Dakota......................

721

Ohio...................................

2,643

Oklahoma...........................

1,879

Oregon...............................

1,203

Pennsylvania......................

4,087

Rhode Island......................

340

South Carolina...................

1,577

South Dakota.....................

450

Tennessee.........................

1,583

Texas.................................

7,476

Utah...................................

1,141

Vermont.............................

344

Virginia...............................

1,638

Washington........................

2,022

West Virginia.....................

698

Wisconsin..........................

3,664

Wyoming............................

296

Puerto Rico........................

165

U.S. Possessions other

than Puerto Rico............

Amount

Footnotes at end of table.

169

Tax-Exempt Bonds, 1996-2002

Table 5.--Total New Money Long-Term Governmental Bonds, by State of Issue and Purpose,

1996-2002--Continued

[Money amounts are in millions of dollars]

Purpose of bond--continued

Housing

State of issue

170

All States.....................................

Alabama...........................................

Alaska..............................................

Arizona.............................................

Arkansas..........................................

California..........................................

Colorado..........................................

Connecticut......................................

Delaware..........................................

District of Columbia..........................

Florida..............................................

Georgia............................................

Hawaii..............................................

Idaho................................................

Illinois...............................................

Indiana.............................................

Iowa.................................................

Kansas.............................................

Kentucky..........................................

Louisiana..........................................

Maine...............................................

Maryland..........................................

Massachusetts.................................

Michigan...........................................

Minnesota........................................

Mississippi.......................................

Missouri...........................................

Montana...........................................

Nebraska..........................................

Nevada.............................................

New Hampshire...............................

New Jersey......................................

New Mexico.....................................

New York.........................................

North Carolina..................................

North Dakota....................................

Ohio.................................................

Oklahoma.........................................

Oregon.............................................

Pennsylvania....................................

Rhode Island....................................

South Carolina.................................

South Dakota...................................

Tennessee.......................................

Texas...............................................

Utah.................................................

Vermont...........................................

Virginia.............................................

Washington......................................

West Virginia...................................

Wisconsin........................................

Wyoming..........................................

Puerto Rico......................................

U.S. Possessions other

than Puerto Rico..........................

Tax/revenue anticipation

notes

Utilities

Bond anticipation notes

Other bonds¹

Number

Amount

Number

Amount

Number

Amount

Number

Amount

Number

(13)

(14)

(15)

(16)

(17)

(18)

(19)

(20)

(21)

(22)

870

-33

163

-4

4,904

363

1,062

-248

436

117

237

-1

250

270

124

112

155

113

122

253

10,036

325

111

243

471

191

-296

140

348

142

266

335

323

127

167

211

477

328

201

129

254

289

152

218

118

192

147

490

1,345

250

139

255

586

85,943

3,281

292

1,868

740

17,266

1,729

512

-6,912

2,675

1,594

906

367

632

1,400

362

476

448

1,372

826

229

888

1,651

818

344

256

8,882

1,965

492

1,107

985

594

1,476

167

1,389

2,222

10,352

693

1,187

3,380

263

776

1,565

649

262

---**

-3

--**

157

----**

--5

-**

-3

--3

-10

-31

---

11,447

10,264

---**

-1

--**

381

----**

--5

-**

-17

118

--2

-7

-68

---

1,190

-11

-**

-11

-132

-65

-40

106

-11

168

4,669

-106

-**

-22

137

236

529

-103

-225

-91

117

487

-44

337

449

682

28,548

685

437

2,186

840

321

913

748

105

1,775

444

703

658

210

394

173

484

651

1,191

1,761

629

389

155

1,999

152

123

601

200

873

821

109

608

178

285

765

149

449

382

1,834

267

536

414

113

1,258

227,566

2,189

1,422

2,662

327

19,511

4,729

6,958

526

2,205

9,255

2,771

3,499

187

20,097

1,460

1,923

1,661

2,612

3,743

820

2,824

10,510

3,752

6,346

2,536

1,841

357

1,287

2,302

1,081

6,996

1,749

27,430

3,233

271

6,044

991

2,031

9,295

915

2,800

165

4,582

11,975

1,282

566

4,587

7,371

318

6,040

6,814

664

** Data not shown to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals.

¹ For purposes of this table, "other" bonds refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G return.

NOTE: Detail may not add to totals because of rounding.

170

Amount

Tax-Exempt Bonds, 1996-2002

Table 6.--New Money Long-Term Governmental Bonds: All Bond Issues and Education Bonds,

by State and Issue Year, 1996-2002

[Money amounts are in millions of dollars]

1996

State of issue

All States.........................

Alabama...............................

Alaska...................................

Arizona.................................

Arkansas...............................

California..............................

Colorado...............................

Connecticut...........................

Delaware..............................

District of Columbia..............

Florida..................................

Georgia.................................

Hawaii...................................

Idaho.....................................

Illinois...................................

Indiana..................................

Iowa......................................

Kansas..................................

Kentucky...............................

Louisiana..............................

Maine....................................

Maryland...............................

Massachusetts......................

Michigan...............................

Minnesota.............................

Mississippi............................

Missouri................................

Montana................................

Nebraska..............................

Nevada.................................

New Hampshire....................

New Jersey...........................

New Mexico..........................

New York..............................

North Carolina......................

North Dakota........................

Ohio......................................

Oklahoma.............................

Oregon..................................

Pennsylvania........................

Rhode Island........................

South Carolina......................

South Dakota........................

Tennessee............................

Texas....................................

Utah......................................

Vermont................................

Virginia.................................

Washington...........................

West Virginia........................

Wisconsin.............................

Wyoming..............................

Puerto Rico...........................

U.S. Possessions other

than Puerto Rico...............

Footnotes at end of table.

All issues

1997

Education issues

All issues

1998

Education issues

All issues

Number

(1)

Amount

(2)

Number

(3)

Amount

(4)

Number

(5)

Amount

(6)

Number

(7)

Amount

(8)

Number

(9)

Amount

(10)

13,375

202

254

180

1,064

243

102

376

267

931

299

286

261

231

203

159

194

633

530

237

339

367

346

108

489

359

349

204

198

558

205

254

960

141

228

276

527

78,745

1,015

461

990

463

8,470

1,156

1,802

247

4,523

1,427

490

217

4,099

1,255

537

666

576

727

217

1,536

2,228

2,904

1,939

480

1,128

170

305

1,067

167

2,660

581

6,893

1,771

2,361

496

1,447

3,265

144

812

1,438

7,230

442

164

2,260

1,868

189

1,991

988

4,629

123

112

467

459

122

102

211

122

162

194

156

122

202

340

160

24,956

442

478

199

1,865

590

549

1,500

419

127

1,509

905

182

259

246

230

331

171

1,849

674

107

391

398

612

158

1,053

818

830

152

476

1,432

446

281

3,045

173

590

408

362

13,281

238

230

163

1,191

240

111

322

290

105

759

313

298

240

174

213

123

184

603

531

204

287

370

344

121

615

419

359

212

131

547

218

248

884

136

259

302

106

584

83,813

943

328

1,405

500

9,433

998

1,297

274

4,255

2,717

688

131

4,443

1,191

528

792

499

822

237

1,203

2,749

3,051

1,658

645

1,018

358

949

135

2,489

625

8,763

2,109

217

2,776

544

613

4,035

199

967

115

1,549

5,930

983

1,981

2,844

182

1,541

1,434

4,558

104

111

576

339

116

186

107

106

194

330

156

132

206

307

170

27,684

271

123

831

233

2,869

445

340

1,131

1,013

2,141

664

173

393

226

295

398

209

1,619

578

200

464

107

314

707

154

1,391

919

960

216

151

1,944

416

236

3,066

300

(¹)

772

665

343

15,411

303

288

192

1,334

324

113

359

351

110

766

416

322

293

198

219

112

142

229

660

564

339

362

641

397

118

615

386

133

444

251

165

694

235

209

1,155

166

230

341

120

602

109,055

1,435

220

1,938

375

11,903

1,650

1,206

185

822

5,747

2,574

526

247

4,016

1,941

686

826

1,148

1,388

251

1,150

3,273

3,536

2,134

1,277

1,641

199

730

1,139

211

3,432

764

15,710

2,110

186

3,576

1,517

1,025

5,039

299

1,355

105

1,520

7,461

861

167

1,961

2,542

492

1,916

109

2,272

263

171

Tax-Exempt Bonds, 1996-2002

Table 6.--New Money Long-Term Governmental Bonds: All Bond Issues and Education Bonds,

by State and Issue Year, 1996-2002--Continued

[Money amounts are in millions of dollars]

1998--continued

State of issue

172

All States........................

Alabama..............................

Alaska.................................

Arizona................................

Arkansas.............................

California.............................

Colorado..............................

Connecticut.........................

Delaware.............................

District of Columbia.............

Florida.................................

Georgia...............................

Hawaii.................................

Idaho...................................

Illinois..................................

Indiana.................................

Iowa.....................................

Kansas................................

Kentucky..............................

Louisiana.............................

Maine..................................

Maryland.............................

Massachusetts....................

Michigan..............................

Minnesota............................

Mississippi...........................

Missouri...............................

Montana..............................

Nebraska.............................

Nevada................................

New Hampshire...................

New Jersey.........................

New Mexico.........................

New York.............................

North Carolina.....................

North Dakota.......................

Ohio.....................................

Oklahoma............................

Oregon................................

Pennsylvania.......................

Rhode Island.......................

South Carolina.....................

South Dakota.......................

Tennessee...........................

Texas...................................

Utah.....................................

Vermont...............................

Virginia................................

Washington.........................

West Virginia.......................

Wisconsin............................

Wyoming.............................

Puerto Rico.........................

U.S. Possessions other

than Puerto Rico..............

Footnotes at end of table.

1999

Education issues

All issues

2000

Education issues

All issues

Education issues

Number

(11)

Amount

(12)

Number

(13)

Amount

(14)

Number

(15)

Amount

(16)

Number

(17)

Amount

(18)

Number

(19)

Amount

(20)

5,272

117

122

610

-32

334

167

207

107

187

130

144

201

302

174

150

232

473

174

31,677

504

727

214

3,047

608

388

1,848

767

-124

1,676

906

292

258

191

409

542

254

2,020

611

649

701

205

148

941

161

1,451

1,150

962

319

370

1,991

320

271

3,782

184

660

940

104

504

15,101

311

252

231

1,279

319

127

358

336

116

820

401

318

321

222

248

123

125

246

716

569

208

342

444

381

118

659

430

119

393

297

210

598

215

236

1,086

172

246

322

529

103,069

2,541

559

1,639

433

10,667

2,276

1,556

184

269

4,561

2,651

456

204

5,864

1,322

592

1,362

1,231

1,173

310

1,178

3,494

3,206

2,014

705

1,223

910

1,320

497

4,174

691

10,482

1,754

184

2,434

803

1,471

4,351

406

1,611

150

1,863

8,517

724

100

2,192

3,590

354

1,677

613

4,828

107

136

554

-24

384

164

104

217

117

215

333

149

185

208

339

118

31,340

875

126

710

206

3,062

762

316

1,187

561

-83

2,734

755

194

482

424

224

401

343

1,162

672

127

468

169

562

1,067

128

1,508

670

935

248

737

1,538

102

401

347

4,868

182

653

560

396

14,272

251

201

196

1,138

343

111

341

305

103

736

376

340

255

216

240

105

138

212

646

600

221

337

449

365

134

681

383

116

342

295

214

519

234

243

1,107

165

233

271

448

103,305

792

639

1,292

562

9,831

2,751

1,943

355

198

5,645

2,726

388

113

6,280

1,728

742

1,239

1,368

1,212

298

874

4,896

3,312

2,747

640

1,733

143

695

1,898

320

5,034

720

8,610

2,188

214

2,365

870

1,618

3,225

386

1,352

158

1,377

8,436

507

2,573

2,082

312

1,929

1,805

4,778

116

511

-52

314

145

233

116

211

369

113

210

214

394

121

32,136

152

155

216

209

3,619

243

567

-1,887

534

1,949

845

288

421

353

347

109

403

362

2,006

832

160

585

241

633

216

1,971

1,183

816

318

492

1,737

125

757

464

4,102

171

785

585

436

373

Tax-Exempt Bonds, 1996-2002

Table 6.--New Money Long-Term Governmental Bonds: All Bond Issues and Education Bonds,

by State and Issue Year, 1996-2002--Continued

[Money amounts are in millions of dollars]

2001

State of issue

All issues

Number

(21)

Amount

(22)

2002

Education issues

Number

(23)

Amount

(24)

All issues

Number

(25)

Education issues

Amount

(26)

Number

(27)

Amount

(28)

All States.............................

14,303

124,629

4,708

40,004

14,312

148,101

Alabama...................................

266

1,882

598

296

2,591

Alaska.......................................

394

610

Arizona.....................................

186

2,243

865

222

2,615

Arkansas...................................

209

870

108

398

214

953

California..................................

1,150

13,852

486

4,382

1,237

23,594

Colorado...................................

359

3,543

664

312

2,883

Connecticut...............................

1,957

337

119

2,654

Delaware..................................

320

282

District of Columbia..................

310

--**

Florida......................................

356

5,503

1,709

375

8,022

Georgia.....................................

299

2,472

869

274

3,957

Hawaii.......................................

1,024

Idaho.........................................

106

310

220

114

271

Illinois.......................................

782

7,796

371

1,985

782

8,558

Indiana......................................

407

2,313

163

1,192

377

2,243

Iowa..........................................

324

1,474

237

341

912

Kansas......................................

295

1,137

447

285

1,169

Kentucky...................................

214

1,857

290

185

1,015

Louisiana..................................

200

1,873

152

216

1,591

Maine........................................

187

117

368

Maryland...................................

133

1,316

483

154

1,824

Massachusetts..........................

190

2,308

669

199

4,397

Michigan...................................

656

5,657

224

2,477

628

4,458

Minnesota.................................

629

2,965

105

956

628

2,836

Mississippi................................

208

928

219

200

656

Missouri....................................

320

2,390

106

720

357

2,247

Montana....................................

Nebraska..................................

443

781

207

447

847

Nevada.....................................

1,888

603

1,245

New Hampshire........................

326

163

447

New Jersey...............................

387

3,072

207

1,694

398

6,858

New Mexico..............................

123

776

240

111

894

New York..................................

612

9,286

341

1,843

577

9,777

North Carolina..........................

389

2,525

1,205

383

2,726

North Dakota............................

179

107

210

Ohio..........................................

378

3,750

133

1,613

378

3,625

Oklahoma.................................

302

975

200

350

318

1,092

Oregon......................................

161

1,617

1,024

124

937

Pennsylvania............................

580

5,055

232

1,707

591

4,438

Rhode Island............................

360

561

South Carolina..........................

231

3,203

444

239

2,936

South Dakota............................

169

227

Tennessee................................

215

1,632

536

178

1,272

Texas........................................

1,157

10,688

439

5,448

1,127

12,480

Utah..........................................

160

803

242

201

1,140

Vermont....................................

113

215

Virginia.....................................

225

2,376

997

217

3,058

Washington..............................

282

4,460

901

228

3,522

West Virginia............................

257

103

304

Wisconsin.................................

519

2,292

124

396

455

3,909

Wyoming..................................

Puerto Rico...............................

926

3,209

U.S. Possessions other

than Puerto Rico...................

--**

**Data not shown to avoid disclosure about specific bonds. However, the data are included in the appropriate totals.

¹ Less than $500,000.

NOTE: Detail may not add to totals because of rounding.

4,589

116

545

-54

326

150

198

200

277

148

220

231

387

112

45,005

297

196

831

333

7,008

883

481

-3,239

1,374

194

1,799

871

384

493

228

511

163

466

439

2,293

962

153

587

158

557

180

2,637

311

1,439

1,084

1,551

575

348

1,947

1,445

172

225

5,291

206

115

932

799

400

(¹)

173

Tax-Exempt Bonds, 1996-2002

Table 7.--Volume of Private Activity Bonds by Type, Term, and Issue Year, 1996-2002

[Money amounts are in millions of dollars]

Type and term of issue

Issue year

All years

1996

1997

1998

Number

(1)

Amount

(2)

Number

(3)

Amount

(4)

Number

(5)

Amount

(6)

Number

(7)

Amount

(8)

All issues, total......................................

Short-term...........................................

Long-term............................................

32,361

690

31,671

548,908

7,513

541,394

4,215

4,155

60,083

418

59,665

4,581

4,524

69,860

760

69,101

5,288

5,214

91,629

462

91,167

New money issues, total.......................

Short-term...........................................

Long-term............................................

24,983

356

24,627

305,758

2,254

303,504

3,055

3,031

31,410

148

31,262

3,528

3,507

37,672

122

37,550

3,986

3,945

46,462

173

46,288

Refunding issues, total.........................

Short-term...........................................

Long-term............................................

11,202

362

10,840

243,150

5,260

237,890

1,607

1,567

28,672

270

28,402

1,564

1,526

32,188

638

31,550

2,061

2,026

45,167

289

44,878

Issue year--continued

Type and term of issue

1999

174

2001

2002

Number

(9)

Amount

(10)

Number

(11)

Amount

(12)

Number

(13)

Amount

(14)

Number

(15)

Amount

(16)

All issues, total......................................

Short-term...........................................

Long-term............................................

5,045

101

4,944

80,876

1,613

79,262

4,427

130

4,297

69,980

931

69,048

4,455

159

4,296

83,501

1,447

82,054

4,350

109

4,241

92,979

1,882

91,097

New money issues, total.......................

Short-term...........................................

Long-term............................................

3,973

3,928

47,930

523

47,408

3,655

3,586

41,688

297

41,392

3,534

3,440

49,948

591

49,356

3,252

3,190

50,648

400

50,248

Refunding issues, total.........................

Short-term...........................................

Long-term............................................

1,725

1,664

32,945

1,091

31,855

1,201

1,137

28,292

635

27,657

1,388

1,318

33,554

856

32,698

1,656

1,602

42,331

1,482

40,849

NOTE: Detail may not add to totals because of rounding.

174

2000

Tax-Exempt Bonds, 1996-2002

Table 8.--Long-Term Private Activity Bonds, by Purpose of Bond and Issue Year, 1996-2002

[Money amounts are in millions of dollars]

Issue year

All years

Purpose of bond

Total...............................................................

Airport.................................................................

Docks and wharves............................................

Mass commuting................................................

Water.................................................................

Sewage..............................................................

Solid waste disposal..........................................

Residential rental...............................................

Local furnishing of electricity/gas.......................

Local heating/cooling facilities...........................

Hazardous waste facilities..................................

High-speed railway.............................................

Hydroelectric environmental facilities.................

Tax Reform Act transition property.....................

Enterprise zone..................................................

District of Columbia Enterprise Zone.................

New empowerment zone....................................

Public educational facilities................................

Liberty................................................................

Mortgage............................................................

Veterans' mortgage............................................

Small issue.........................................................

Student loan.......................................................

Redevelopment..................................................

Section 501(c)(3) hospital..................................

Other section 501(c)(3)......................................

Nongovernmental output property......................

Other bonds ¹.....................................................

All issues

Number

(1)

31,671

682

207

136

328

981

4,318

-6

633

2,063

9,640

334

2,770

9,811

1996

New money issues

Amount

(2)

541,394

44,637

8,120

188

2,018

2,982

22,552

48,550

4,393

208

172

-163

28,768

260

90,525

3,704

20,610

17,790

214

108,048

136,624

585

Number

(3)

24,627

463

129

259

732

2,614

-6

1,208

8,373

236

2,276

8,457

Amount

(4)

303,504

26,697

4,817

188

1,139

1,691

11,447

25,331

882

101

-158

623

260

32,883

1,198

17,030

11,474

65,994

100,952

221

All issues

Number

(5)

4,155

-21

120

557

-**

--82

-n.a.

n.a.

257

1,588

397

988

New money issues

Amount

(6)

59,665

4,500

1,410

-362

559

3,173

6,750

491

-**

--3,578

-n.a.

n.a.

10,473

3,623

1,860

11,971

10,712

Number

(7)

3,031

-17

102

212

-**

--10

-n.a.

n.a.

161

1,297

311

816

Amount

(8)

31,262

2,741

1,091

-184

400

1,644

1,936

230

-**

--156

-n.a.

n.a.

4,841

2,759

1,363

6,503

7,268