Which type of bond is most likely backed by ad valorem taxes?

The bond that is most likely backed by ad valorem taxes is the city general obligation bond. General obligation bonds are issued by municipalities to finance public projects and are backed by the full faith and credit of the issuing government. This means that the issuer promises to use various sources of revenue to repay the bondholders, with ad valorem taxes (taxes based on property value) being a primary source of this backing.

Ad valorem taxes provide a stable and predictable source of revenue because they are assessed on real estate, which generally appreciates over time. This type of bond tends to carry lower interest rates due to the security offered by the taxing authority, since the government has the power to levy taxes to ensure repayment.

In contrast, other types of bonds listed do not typically have such direct backing from ad valorem taxes. Industrial revenue bonds, for instance, are usually secured by revenues generated from the specific projects they finance, rather than general tax revenues. Special tax bonds are backed specifically by a particular type of tax, rather than general property taxes. State general obligation bonds also rely on broader state revenues, which may not specifically include ad valorem taxes.