I don't think you read that quite right. The Tax Anticipation Note (TAN) is to provide funds for the county to operate with (if they need to) until the the receipt of taxes actually happens. It's a cash flow thing. The government needs cash on hand to be able to do its functions.
Previously, they sent out tax notices in late September/early October and said you had until the end of the year to pay them. Some would pay right away, some would pay after a month or two, and some would wait until the last day. But during all of that there were tax revenues coming in to fund the day-to-day activities.
The tax re-assessment impacted that by delaying when tax notices can go out. They have to wait for the two assessment appeal periods to end, then update the tax digest, determine of a millage rate change applies, make that change, print up the tax bills, and then send them out.
So there's no money coming in for taxes in the interim like there ordinarily would be, and the TAN is there to cover that period IF they need it.
It's like me putting my time in at work but payday isn't until two weeks and in the meantime I need burgers and gas. I get a quick loan to cover me until payday. My bills didn't go up. I'm not even positive I need the loan, but better to have it on me and not need it than need it and not have it. That's the same thing that's happening with the TAN.
Cash flow. It's all about cash flow.
This is my kirttimukha
Edited by - ShadowMan on 10/05/2006 12:52:43 PM