This year's higher taxes played a secondary role as demand for municipal bonds surged after April 15 tax deadline passed, according to analysts.

Analysts had predicted that demand for municipal bonds would increase in late April after investors in the highest tax bracket saw the impact of the Patient Protection and Affordable Care Act on their 2013 federal taxes, making munis' tax-exemption more appealing. While analysts acknowledge higher taxes did increase munis' attractiveness April 15, they said market conditions were the primary factor in ramping-up demand.

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