I own a money market fund. I looked at the year end portfolio distribution to determine how much of the fund interest (in form of dividends) is tax exempt. A portion is US Treasury Bonds which is known to be exempt from state income tax, but a large portion of the fund holds repurchase agreements with various banks including the Federal Reserve bank with the underlying collateral as US Treasuries. The heading for this portion of the portfolio is titles "U.S. TREASURY REPURCHASE AGREEMENTS 85.2%" and listed the various banks under which the fund has agreements with. Is this interest exempt?
