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 ?
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.
In order to manage cash flow needs the county issues short-term RANs annually and tax anticipation notes (TANs) twice each year.
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.