Ad Valorem Taxes
A tax based on the assessed value of an item, such as real estate or personal property.
bond-basics
Tax Increment Financing (“TIF”) Bonds
Bonds are special obligations secured by incremental increases in Tax revenues paid by users of developed property or by general increases in taxable values within a designated tax increment area. The Taxes involved are usually Ad Valorem Property Tax, although some states may permit the use of sales taxes or hotel occupancy taxes. State laws specify the mechanism and process for the implementation of Tax Increment Financing.
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Learn more about the various types of municipal obligations you may encounter.
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Private Loan Financing Test
One of the tests used in establishing whether a bond is a private activity bond (PAB) for tax purposes. The private loan financing test specifically determines whether more than $5 million or 5% of the proceeds of a bond issuer are used to directly or indirectly finance loans to one or more non-governmental persons.