What is the purpose of a special assessment tax?

The purpose of a special assessment tax is primarily to fund specific public improvements that are beneficial to a particular geographic area or community. This type of tax is levied against properties that directly benefit from the improvements, such as new roads, sidewalks, street lighting, parks, or utility upgrades.

The rationale behind special assessments is that property owners who derive a direct benefit from these enhancements should contribute to their costs, ensuring that funding is allocated in a fair and targeted manner. This approach allows local governments to finance projects that enhance the value and livability of specific neighborhoods, without burdening the broader tax base for improvements that may not benefit everyone equally.

Other types of taxes, such as those used for ongoing maintenance, public school funding, or general support of local governments, often cover wider-ranging services that serve the entire community rather than targeted projects that specifically enhance certain properties.