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 ?
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.
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.
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.
The district historically has issued tax anticipation notes (TANs) for cash flow purposes.