Examples
The most universally known special assessments, are charges levied against lands when drinking water lines are installed; when sewer lines are installed; or when streets are paved with concrete or some other impervious surface. However, special assessment tax levies can be made for other purposes including police or fire protection, parking structures, street lighting and many of the other purposes permitted by state and local government statutes.
While variations of the concept of special assessments may exist in a number of the world’s nations, in the United States of America, a special assessment is more formally defined through court action as remuneration that a governmental unit may demand from property owners to fund a public project which creates a "benefit" in properties lying within a special geographic area known as a special assessment district.
Some argue this tax has proven to be detrimental to home-ownership of those living on a fixed income. It has also aided the ever widening gap between the living standards of the rich and poor. Such arguments tell only part of the story. They may be appropriate for improperly levied special assessments, but appropriately levied special assessments require that the property owner "benefit" by a measurable increase in the property's market value. (See reference 1). The amount of tax is limited by that "measurable" increase in value. Also, as a general principle, most taxing legislation recognize the limited financial resources of the elderly, the handicapped and the disabled. Exemptions and deferments from the special levy have been created within some legislation. Arguments against the tax based upon living standards may not recognize the importance of providing clean drinking water or sewer services to land owners. Finally, such arguments may not fully consider the benefit to people, animals and plants in the ecosystem protected by a public improvement such as sewage treatment infrastructure. Poorly drafted tax legislation may very well create inappropriate burdens on a taxpayer and be viewed with disdain. However, few would argue that the modern world should exist without infrastructure to distribute fresh water, move vehicular traffic, provide public street lighting or treat sewage.
Read more about this topic: Special Assessment Tax
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