What type of bonds require voter approval and are linked with state municipalities?

General Obligation (GO) bonds are distinctive because they are backed by the full faith and credit of the issuing municipality, which includes the power to tax residents to repay the bondholders. This reliance on tax revenue means that their approval typically requires a vote from the residents of the municipality, reflecting the public's direct stake in the repayment of these bonds.

The voting aspect is crucial because issuing GO bonds has implications for the taxpayers, who may face an increased tax burden to fulfill the obligations tied to the bonds. Thus, municipalities often conduct elections to allow residents to express their support or opposition before such bonds are issued.

Other bond types, such as revenue bonds, are repaid from the income generated by specific projects (like toll roads or public utilities) and do not require voter approval because they do not impact the municipality's general tax revenues. Similarly, tax-exempt bonds can also be issued without voter consent as they are often used for projects that provide public benefits but are repaid through other means. Limited Tax bonds typically have specific limitations regarding the taxing authority and may not require a vote for approval, depending on the specific terms and jurisdiction.