tax anticipation note


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Related to tax anticipation note: Revenue Anticipation Note, Bond anticipation note

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.

tax anticipation note (TAN)

A short-term municipal obligation that is sold to provide funds for government operations until taxes have been received. At that time the receipts are used to repay the debt. These generally low-risk securities appeal primarily to larger investors.
References in periodicals archive ?
Pledged revenues from a dedicated levy for the special obligation tax anticipation notes provide adequate debt service coverage with excess revenues supporting 100% of COP payments, which are subject to annual appropriation.
NEW YORK, April 15 /PRNewswire/ -- Fulton County, GA's $75,000,000 General Fund Tax Anticipation Notes (TANs) are rated 'F-1+' by Fitch.
NEW YORK -- Fitch Ratings has assigned an 'F1+' rating to the following tax anticipation notes (TANs) for the Commonwealth of Pennsylvania (the Commonwealth):
NEW YORK, March 28 /PRNewswire/ -- Cobb County, GA's $41,000,000 General Obligation Tax Anticipation Notes Series 1996 due Dec.
AUSTIN, Texas -- Fitch Ratings has published a report on Harris County's (TX) tax anticipation notes (TANs).
12 /PRNewswire/ -- The Commonwealth of Pennsylvania's $500 million Tax Anticipation Notes, First Series of 1995-96, for bids on Oct.
26 /PRNewswire/ -- Orange County School District (FL)'s $35,000,000 Tax Anticipation Notes, Series 1995 are rated 'F-1+' by Fitch.