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How to Buy Vermont Tax Exempt Bonds

The State does not sell bonds directly. You must buy these bonds through a registered broker/dealer. These bonds may be either newly issued or they may be offered on the secondary market (i.e., bonds that were previously issued that are put up for sale by the owner). Except in certain circumstances, the State issues general obligation bonds through a competitive sale. The Treasurer accepts bids from municipal underwriting firms to buy the bonds. The underwriting firms, following the purchase, sell the bonds to individual and institutional investors.

New issue bonds are sold without commission or trading mark-up. They will be most readily available from the firm that is acting as lead manager for a bond issue, or from a firm that is designated as a "selling group" member. Depending upon demand for a new issue, availability of bonds can be limited, especially for more popular maturities. Most bonds are issued in denominations of $5,000. Each year the State Treasurer's Office issues special "citizen bonds," available only to Vermont residents, in denominations as low as $1,000.

Secondary, or seasoned, bonds may be available from these same dealers. Bonds purchased in the secondary market are subject to both commissions and dealer mark-ups (i.e., there is a spread between the bid price that the dealer will pay for a bond, and the ask price that a dealer receives for offering a bond).

The State Treasurer's Office does not endorse any particular broker/dealer. If you are interested in obtaining information concerning prospective broker/dealers, we recommend you visit the Web site for Securities Division, Department of Banking, Insurance, Securities & Health Care Administration (BISHCA), or call 802-828-3420.

Our Web site includes information on new offerings. Click here to see information on upcoming and recent issues by the State of Vermont. In addition, these other state agencies and authorities issue bonds.


As with any investment, state, municipal, agency and other tax- exempt debt instruments are not without risks to the investor. These risks include credit, interest rate, market, tax, and other risks that may include loss of the entire amount invested. While many tax-exempt issues offer above-average credit quality, investors are urged to consult with their financial and tax advisors prior to purchasing Vermont tax-exempt debt instruments or any investment security.