What type of bonds are secured by non-ad valorem taxes and revenues?

The correct choice refers to tourism development bonds, which are typically secured by non-ad valorem taxes and various revenue sources associated with tourism activities, such as hotel or lodging taxes. This type of bond allows municipalities to fund projects that aim to promote local tourism, thereby generating revenue through these specific taxes.

Tourism development bonds are a way to leverage expected revenue from tourism to support the issuance of debt, as they do not rely on property taxes, which are classified as ad valorem taxes. Instead, they take advantage of fluctuating tourism-related revenues, which provide a unique and often variable funding source for municipality projects designed to enhance tourism infrastructure and drive economic growth in the sector.

In contrast, general obligation bonds are typically secured by the full faith and credit of the issuing municipality, relying on ad valorem property taxes for repayment. Utility bonds are secured specifically by user fees from utility services rather than taxes. Revenue bonds usually derive their support from specific income sources, which can include fees or rents, but do not specifically highlight tourism-related revenue as tourism development bonds do.