What is a Non-Taxable State Municipal Money Market Fund?
Cfefinances
A Non-Taxable State Municipal Money Market Fund is a low-risk fund that invests in short-term debt issued by state and local governments. The interest it pays is generally exempt from federal income tax, and when the fund holds securities from the investor's own state, that interest can also be exempt from state income tax.
Think about parking cash in a fund whose interest escapes certain taxes. It's the tax-friendly cousin of a taxable money market fund.