What are the sources of funding to pay debt service on general obligation (GO) bonds?

General obligation (GO) bonds are municipal bonds that are backed by the full faith and credit of the issuing government entity, which typically means that they can use various revenue sources to meet their debt obligations. The primary source of funding for debt service on GO bonds is taxes, and these can include property taxes, income taxes, and general sales taxes.

Property taxes are often the most common funding source for GO bonds, as they are typically levied by municipalities to finance public projects. Income taxes can also contribute, especially if they are levied at the local or state level, providing additional revenue. General sales taxes may also be used to fund these bonds, as they represent a broader source of taxable income from consumption within the municipality.

The combination of property taxes, income taxes, and general sales taxes provides a robust framework for ensuring that there are sufficient funds available to pay debt service. This is why the correct answer encompasses all these types of taxes, highlighting the diverse revenue streams that support the financial integrity of general obligation bonds.