Is the Victory Tax Exempt Intermediate (symbol - UITIX) taxable in New York?

[billpaqs]

Victory Tax Exempt Intermediate

[rjs]

We cannot advise you as to the taxability of a specific investment. Here are two short excerpts from the prospectus for Victory Tax Exempt Intermediate-Term Fund.

"The Victory Tax Exempt Intermediate-Term Fund (the 'Fund') provides investors with interest income that is exempt from federal income tax."

"While the Fund is managed so that at least 80% of its annual interest income will be tax exempt, it may invest up to 20% of its assets in securities that generate income that is not tax exempt. The exemption of income for federal income tax purposes does not necessarily mean that income is exempt under the income or other tax laws of any other state or local taxing authority."

For more information contact Victory Funds.

[Hal_Al]

Q. Is the Victory Tax Exempt Intermediate (symbol - USATX) taxable in New York?

A. Simple answer: Yes. 

USATX is a multistate tax exempt fund. The dividends are exempt from federal tax. Only the portion  of the dividends attributable to the fund's investments in NY bonds is exempt from NY state tax.  Victory can provide you a  breakdown, by state, list. The don't send it automatically. You have to ask for it or find it on their web site. NY was 5.71% for 2024.*  In addition, the percentage attributable to US territories is also not taxable by your state.  So, in total, only 6.15% (of the box 12 amount on form1099-DIV) was not taxable by NY in 2024. So most of the box 12 amount  ( about 94%) is taxable by NY.   

The TurboTax interview can handle entering of this breakdown so that the taxable amount gets adjusted on your NY return. For details on how to enter, see: https://ttlc.intuit.com/community/state-taxes/discussion/re-exempt-interest-dividends-are-entered-fr... Most particularly, see the screen shot at that link.

Some people take the attitude that only 6% of the box 12 amount being tax  exempt isn't worth the bother of all that. 

*Google " victory capital state breakdown 2025", in January or possibly later this year. 

https://www.vcm.com/assets/resources-mutualfunddoc/2024-Victory-Portfolios-III-State-Tax-Information...