Fair Taxation of Municipal Bonds Amendment Act of 2025

The Fair Taxation of Municipal Bonds Amendment Act of 2025 would maintain the tax exemption for interest earned on out-of-state municipal bonds purchased before January 1, 2025. This directly protects District of Columbia residents, particularly retirees on fixed incomes, who had relied on this exemption when making investment decisions. The bill amends the tax code to explicitly exclude interest from such pre-2025 bonds from taxable income calculations. This change prevents unexpected tax bills on bonds held under prior tax rules, aligning with similar approaches in other states like Utah.