Definition of Special Tax Bond

Special Tax Bond is a type of municipal revenue bond that is supported only by revenue from certain taxes.

Applying "Special Tax Bond" to Securities Exams:

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.

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials

Please wait....

Your Cart