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What are sources of income that can be used for debt service on municipal revenue bonds?

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Answer:

Municipal Revenue bonds are bonds that are serviced from the income accrued from a project that the bond was used to embark on.

They can therefore be serviced by a variety of income methods that accrue from the projects such as;

  • User fees for using the asset built
  • Special taxes
  • Lease rentals in cases where the asset is leased out
  • Excise taxes
  • Other Non Ad-valorem taxes that result from benefits attached to usage of the asset built.

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