Question

Net bonded debt (securitization from taxes) of munis includes ______.

A) federal grants, state revenues, and local taxes
B) sales tax, property tax, and income tax
C) local taxes, state grants, and federal revenues
D) public donations, federal bonds, and state subsidies

Answer 1

Net bonded debt of municipal governments includes funds from sales tax, property tax, and sometimes income tax, which are used for local government activities and services.

Step-by-step explanation:

Net bonded debt (securitization from taxes) of municipal governments includes funds generated through various forms of taxation, but not federal grants, state revenues, or donations.

Specifically, it is comprised of local sources such as sales tax, property tax, and in some cases, income tax, which are all ways in which state and local governments collect taxes from residents to support state and local government activities.

These taxes are used to fund services such as public park maintenance and police forces, and in some states, are also supplemented by federal and state grants.