Do General Obligation Bonds Raise Taxes?

An unlimited-tax general obligation bond comes with similar features as the limited-tax version, but with no limit on the property tax increase. The property tax can be increased by up to 100%, but only with the consent of taxpayers. Note that for limited-tax GO bonds, the taxpayers' approval is not usually required.

Do general obligation bonds increase taxes?

These bonds are backed by the general revenues of an issuer, including taxes. Unlike dedicated tax GOs, however, they do not have a specific tax pledged to repay them. Instead, bondholders are paid from general revenues, and if those prove insufficient to cover debt service, the issuer typically must raise taxes.

Are general obligation bonds a good investment?

General obligation bonds are seen as good, safe investments, and some are also tax exempt. They're less risky, but also often deliver less return, than municipal revenue bonds, corporate bonds or other investments like stocks.