REVENUE bonds raise revenue for state and local governments in Texas. The people buy the bonds. The government uses the money and then pays back to bond holder with the revenue from the government project.
Government fees are charges so the government can repay the lenders (cost of the service).
General obligation bonds use taxes to pay back the debt.
When you see the word "best" in a question, remember that several choices could be correct, but you are looking for the BEST one. Read them carefully.
Sales Tax: Pay for goods you buy
Property Tax: You pay based on the value of your property (house and land)
911 emergency service is a great example of a government fee.
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Overall, revenue bonds and government fees are both methods used by state and local governments in Texas to raise revenue for projects and services. Revenue bonds are paid back from the revenue generated by the project, while government fees are charges to pay back lenders for the cost of the service provided. General obligation bonds, on the other hand, use taxes to repay the debt. Sales tax is a tax paid on goods purchased, while property tax is based on the value of property owned. And 911 emergency service is an example of a government fee.
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