Special Assessment Tax - Difficulty

Difficulty

Among the unique characteristics of the special assessment is one that makes a special assessment particularly onerous for ordinary citizens. A special assessment levy enjoys a legal benefit known as a "presumption of validity." This means that it is much harder and usually, much more expensive to appeal than the ad valorem property tax most citizens are familiar with. This happens because it is difficult for the ordinary citizen to recognize that an error in the special assessment procedure or methodology has occurred and the resources a taxpayer must use to fight a special assessment levy are more expansive and costly than resources to fight an improper ad valorem tax on their real estate.

For example, most property taxpayers intuitively understand market forces associated with the value of their homes or other property. Consequently, if the tax assessment seems out of line, they usually can recognize it quickly. In the case of special assessments, it is difficult for even professionals to grasp the complex nuances associated with the concepts of necessity and benefit which are the foundations of a special assessment levy.

Once a taxpayer has recognized a problem exists, the difference in procedures to appeal a property tax and a special assessment levy makes a special assessment appeal much more difficult. Whereas, ad valorem tax appeals can often be made at a local level without any professional help, special assessment appeals often require the assistance of attorneys, engineers and other consultants. Furthermore, a taxpayer often has the opportunity to protest a property tax assessment annually. In the case of most special assessments, there is usually a very short window of opportunity to appeal and if the window is missed, there can be little recourse available.

Of most importance to any property owner who feels aggrieved by a special assessment levy is a legal concept known as a "presumption of validity". This means courts regard the actions of local government units with deference and the courts presume the government unit did everything correctly. At a minimum, any challenge to the special assessment must show the government did not act lawfully. That challenge is significant.

For all these reasons, it is critical for any person facing a special assessment levy to participate in public hearings and monitor the special assessment process from its earliest stages.