The United States Supreme Court has held that the federal government may tax the interest from state and municipal bonds.
South Carolina v. Baker, 108 S. Ct. 1355 (1988).
Michael J. Sluss,
Tenth Amendment - Intergovernmental Tax Immunity - Federal Taxation of State and Municipal Bond Interest,
Duq. L. Rev.
Available at: https://dsc.duq.edu/dlr/vol27/iss2/8