State
(iii) (A) The legislature of the government of the Virgin Islands may cause to be issued after September 30, 1984 , industrial development bonds (within the meaning of section 103(b)(2) of title 26). (B) Except as provided in subparagraph (C), any obligation issued under subparagraph (A) and the income from such obligation shall be exempt from all State and local taxation in effect on or after October 1, 1984 . (C) Any obligation issued under subparagraph (A) shall not be exempt from State or local gift, estate, inheritance, legacy, succession, or other wealth transfer taxes. (D) For purposes of this paragraph— (I) The term “State” includes the District of Columbia. (II) The taxes imposed by counties, municipalities, or any territory, dependency, or possession of the United States shall be treated as local taxes. (E) For exclusion of interest for purposes of Federal income taxation, see section 103 of title 26 .