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Are local taxpayers liable if a project is not successful?

April 26, 2017liable local project successful taxpayers

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Are local taxpayers liable if a project is not successful?

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Tax allocation bonds are revenue bonds. This means that they are payable from revenues associated with the project. These bonds are not backed by the full faith and credit or the taxing authority of the city. The city would not be obligated to repay bonds issued for projects that experience revenue shortfalls.