Special Tax Bond
What is a Special Tax Bond
Special Tax Bond is a type of municipal revenue bond that is supported only by revenue from certain taxes.
SecuritiesCE Explains Special Tax Bond
If a state or a town needs to build or repair a facility such as a reservoir a bond will often be issued to finance that facility. A special tax may then be assessed upon the properties who use that facility. The bond interest and principal payments will be supported by revenue generated from that special tax.