710:50-15-57 Adjustment for state and local obligations

(a) Income received on obligations issued by any state or political subdivision which is exempt from Federal taxation but not specifically exempt from state taxation by Federal or Oklahoma Statute shall be added to Federal Adjusted Gross Income. (b) Income from obligations issued by the State of Oklahoma or any political subdivision is exempt if so provided by the statute authorizing issuance of the obligation OR if it is a local governmental obligation issued after July 1, 2001, for a purpose other than to provide financing for nonprofit corporate projects. (c) For purposes of this Section, " local governmental obligations " includes, but is not limited to, bonds or notes issued by, or on behalf of, or for the benefit of, Oklahoma educational institutions, cities, towns, or counties, or by public trusts of which any of the foregoing is a beneficiary. (d) All income from obligations issued by any state or political subdivision of a state other than Oklahoma is taxable. [ See: 68 O.S. §2358(A)(1)]