special tax bond

Special Tax Bond

A government bond where repayment is guaranteed by a tax that the issuer levies specifically for that purpose. For example, suppose a city issues a special tax bond to build a new campus for the community college. It may levy an excise tax on alcohol sold in the city in order to pay coupons and eventually the principal on this bond. While excise taxes commonly pay for special tax bonds, increases in property taxes, sales taxes, or any other duty may be used.

special tax bond

A municipal bond with debt service limited to the revenues generated by a special tax. A bond issue to finance a convention center with the interest and principal payments limited to taxes received from a levy on motel and restaurant sales is an example of a special tax bond. Certain special tax bonds are also secured by the full faith and credit of the issuer; they have the additional security of being general obligations.
References in periodicals archive ?
Arlington's series 2008 and 2009 special tax bond pledged revenues consist primarily of a citywide .5% sales and use tax rate, as well as a 5% tax on motor vehicle rentals and 2% hotel occupancy tax.
The special tax bond rating is limited by the city of Arlington's 'AAA' IDR.
She has extensive experience structuring new money and refunding transactions for a wide variety of credits, including special tax bonds, tax allocation bonds, lease revenue bonds, certificates of participation, general obligation bonds, pension obligation bonds, and tax and revenue anticipation notes.
Special Tax Bonds. In terms of default risk, special tax (and assessment) bonds can be highly risky.
Special tax bonds (including special assessment bonds) are a diverse group of municipal securities that often bear substantial risk for both issuers and investors, especially when they are payable from property taxes (or assessments) levied on undeveloped real estate to pay for infrastructure that is intended to serve the property.
The report, among other things, presented four financing options--GO bonds, special tax bonds, special assessment bonds, and a community facilities district--that the City may use to meet its unfunded infrastructure and services needs.
The payments of interest revenue and principal on municipal bonds may be secured by the full faith and credit of the issuer (general obligation bonds), a specified tax (special tax bonds) or income generated by the project (revenue bonds).
10 (highpark) and the potential future issuance of one or more series of special tax bonds for the cfd.
Such loans are used in certain types of land-based financings in some jurisdictions, such as tax assessment bonds or special tax bonds (e.g., California Mello Roos bonds) for private development of infrastructure improvements (e.g., streets, lighting, sewers, or undergrounding of utilities).
SUFFICIENT REVENUE BOND COVERAGE: Coverage of maximum annual debt service (MADS) for all special tax bonds is sufficient for the 'AA' rating level, in spite of varying degrees of volatility over the last several years; legal provisions are sound.
Through this Request for Qualifications ( RFQ ) process, the City Attorney s Office of the City of San Jose (the City ) is seeking to establish a pool of qualified law firms to provide bond counsel and disclosure counsel services in connection with the issuance of various types of municipal bonds and other indebtedness, including without limitation, general obligation bonds, tax and revenue anticipation notes and/or bonds, lease revenue bonds, certificates of participation, commercial paper notes, special assessment bonds, multi-family housing bonds and community facility district (Mello-Roos) special tax bonds by or on behalf of the City.
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