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Tax Anticipation Notes

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Tax Anticipation Notes (Tans)
Notes issued by states or municipalities to finance current operations in anticipation of future tax receipts.

Tax Anticipation Note
A municipal bond, usually with a maturity of less than one year, issued on the assumption that the debt will be paid back on future tax revenue. Municipalities issue tax anticipation notes to provide cash for immediate or time sensitive needs. For example, a city may issue a bond to pay for school construction rather than wait for tax revenues to pay for it because either the school is desperately needed or construction can only occur in certain times of the year when the city is cash poor. At maturity, tax anticipation notes are paid with tax revenues in the months following the issue.


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Selectmen signed another $250,000 in tax anticipation notes Wednesday because taxpayers are not sending in voluntary tax payments as officials requested.
AUSTIN, Texas -- Fitch Ratings assigns an 'F1+' rating to Cypress-Fairbanks Independent School District, TX's (the district) $36 million tax anticipation notes (TANs), series 2009.
Petersen signed tax anticipation notes totaling $1,150,000.
 
 
 
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