Different accounts have different tax characteristics under the law. (thebalance.com)
Another objective is to correct some common misconceptions through a critical analysis of nine myths regarding school funding litigation, property tax characteristics, and the state role in funding education. (ctschoolfinance.org)
I've been using «dividends» instead of «distribution» as in your question but most funds have distributions that have components with different tax characteristics. (money.stackexchange.com)