I live in California and I am looking at CMF.
CMF is an Exchange Traded Fund (ETF) which holds CA Muni Bonds and pays a monthly dividend. Do I pay taxes on these monthly dividends if I live in California?
Are Municipal Bond ETF Dividends Taxable if the bonds held are in your state of residence?
October 26, 2009 By 1 Comment
Dear Rush: Generally muni’s in your state are not taxed Federal or State. I am not familiar with CMF so I would check with your broker or issuer of the bond. If you got a brokerage statement it should specify the tax treatment of the bonds.
This advice was prepared based on our understanding of the tax law in effect at the time it was written and it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor