Tax Anticipation Notes

Also found in: Dictionary.

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 ?
Rather, it's his best estimate for when he'll need to start preparing documents and lining up buyers for these "tax anticipation notes." And before he can get started, Edwards must have a balanced budget in hand to demonstrate that Oregon's fiscal house is in order.
New York: Fitch Ratings has assigned an 'F1+' rating to the following State of Idaho tax anticipation notes (TANs):
Because of this, Edwards plans to borrow money on the bond market through "tax anticipation notes" - low-interest notes that would be repaid within 13 months.
Preparation and issuance of Bond Anticipations, Special Emergency and Tax Anticipation Notes. 4.
In order to manage cash flow needs the county issues short-term RANs annually and tax anticipation notes (TANs) twice each year.
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.
The successful Contractor will be responsible to provide special counsel services for a comprehensive debt obligation program for competitive and negotiated, taxable and tax exempt instruments including, but not limited to: General Obligation Bonds; General Obligation Refunding Bonds; Sales Tax Bonds; Certificates of Participation (equipment and real estate); Certificates of Participation Refunding (equipment and real estate); Qualified Zone Academy Bonds; Qualified School Construction Bonds; Build America Bonds; Capital Appropriation Bonds; Tax Anticipation Notes; Revenue Anticipation Notes; Bond Anticipation Notes; Capital and Operating Leases; Forward Delivery Agreements; Bank Loans; and any other various short term and long term debt to fulfill the objectives of the District.
Securities and Exchange Commission, expects Fulton County will pay its $200 million of outstanding tax anticipation notes (TANs) due on December 29.
New York: Fitch Ratings expects Fulton County will pay its $200 million of outstanding tax anticipation notes (TANs) due on December 29 through a combination of general fund operating receipts and non-general fund reserves.
Securities and Exchange Commission, assigned the following ratings to Suffolk County, NY offerings: --$62.3 million refunding serial bonds-2017 series C 'A-'; --$127.2 million refunding serial bonds-2017 series D 'A-'; and --$410 million in tax anticipation notes (TANs) for 2018 taxes 'F1'.
The reverse is also true, and Pennsylvania also retains the authority to issue tax anticipation notes as an alternative to interfund borrowing.
The Baa3 rating reflects the city's weak financial position, which improved to a positive Current Fund balance in 2015, and reliance on tax anticipation notes for operations.