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.
References in periodicals archive ?
Tax anticipation notes are sometimes used by cities and other local governments to borrow cash that they later pay back with tax revenue, although both the Eugene and Bethel districts say they have never used the debt instrument before.
105 million of outstanding delinquent tax anticipation notes
35 million in tax anticipation notes since July 1 to pay fiscal 2007 bills.
NEW YORK -- Fitch Ratings assigns an 'F1+' rating to the following State of Oregon full faith and credit tax anticipation notes (TANs):
145 million outstanding tax anticipation notes series 2011A downgraded to 'F1' from 'F1+';
Preparation and issuance of Bond Anticipations, Special Emergency and Tax Anticipation Notes.
Approximately $730,000 special obligation tax anticipation notes, affirmed at 'A-'.
Issuances may include, but are not limited to, new and refunding (i) Certificates of Participation (COPs), (ii) Obligation Bonds (GOBs), and Sales Tax Revenue Bonds, Revenue Anticipation Bonds (RANs), Tax Anticipation Notes (TANs), Bond Anticipation Bonds (BANs); any other lease purchase or any other financing vehicle determined to be in SBBC s best interest.
145 million tax anticipation notes, 2011 Series A at 'F1+';
In December 2011 and January 2012, the county plans to issue an aggregate $400 million in tax anticipation notes (TANs) in anticipation of the receipt of real property taxes levied for fiscal 2012.
Outstanding general obligation public improvement bonds at 'AA-'and outstanding tax anticipation notes at 'F1+'.
NEW YORK -- Fitch Ratings assigns an 'F1+' rating to the following state of Idaho tax anticipation notes (TANs):