Section 1-1109 - Bonds - Tax status(a) A bond, the transfer of a bond, the interest payable on a bond, the income derived from a bond, and the profit realized on the sale or exchange of a bond are exempt from State and local taxes.(b) A county or municipality may issue bonds without regard to the federal tax status of the bonds.Revised and recodified by 2013 Md. Laws, Ch. 119,Sec. 2, eff. 10/1/2013.