Taxation and Finance

Question 1

Bonds – General vs. Revenue

Answer 1

Revenue bonds are not backed by the taxing power of the issuing government. They are payable from funds derived from the project itself, not tax revenues, rents, or fees paid from state tax revenues.
The bond must be issued for a capital project for public purpose.
FL Constitution doesn’t require referendum for revenue bond issue.

General obligation bonds are used for capital projects that do not generate revenue themselves. The project is backed by the full faith and credit of the state. The bonds are payable from the general tax revenue collected by the state. The FL Constitution requires referendum to issue general obligation bonds.