Tax anticipation note is a short-term note issued by states and municipalities to finance current operations, pending receipt of expected tax payments. They are issued in anticipation of future tax collections. These notes are issued at a discount, have maturities of a year or less, and mature either at a specific future date or when property and other taxes are collected. Tax anticipation notes hold first claim on tax receipts when collected. These notes are generally low-risk securities and primarily appeal larger investors. Tax anticipation note is also referred to as Tax anticipation warrant.