Security for New York State Bonds
Below are the sources of repayment on the State’s four largest bonding programs.*
General Obligation Bonds – Principal and interest are secured by the full faith and credit of the State of New York and are supported by the State’s unlimited taxing power.
State Personal Income Tax Revenue Bonds – Principal and interest are secured by up to the greater of $6 billion or 25% of personal income tax revenues of New York State citizens that are deposited into a special fund dedicated to the payment of debt service on such bonds.
State Sales Tax Revenue Bonds – Principal and interest are secured by a one percent rate of taxation of the State’s four percent sales tax, and increases to a two percent rate of taxation upon the satisfaction of all obligations and liabilities of the Local Government Assistance Corporation.
Dedicated Highway & Bridge Trust Fund Bonds – Principal and interest are secured in part by various transportation-related taxes and fees including portions of the State’s motor fuel taxes, motor vehicles fees, highway use taxes, and auto rental taxes that are deposited into a trust fund dedicated to the payment of debt service on such bonds.
* For repayment information specific to an individual bond offering, please see the Official Statement.