Demand Deposit Securities of the State and Local Government Series; Average Marginal Tax Rate and Treasury Administrative Costs

Resumo

This notice is being published to provide the information necessary to apply the interest rate formula for Demand Deposit United States Treasury Certificates of Indebtedness--State and Local Government Series (31 CFR Part 344, Subpart C). The final regulations governing securities of the State and Local Government Series which appear in the current issue of the Federal Register, in setting out the formula, make provision for the simultaneous publication of this notice (31 CFR 344.5). The factor necessary to convert the interest rate to a tax-exempt equivalent (1--the estimated average marginal tax rate of purchasers of tax-exempt bonds) is 1-.29 or .71. The Treasury administrative cost is five basis points.