What is a special assessment?

A special assessment refers specifically to a charge levied against certain properties to cover the cost of improvements that benefit those properties directly. This typically occurs when a local government undertakes a project that enhances infrastructure or services—such as paving a street, installing sidewalks, or improving drainage—that will primarily benefit specific properties within a designated area.

Unlike general property taxes that are distributed across all properties within a certain jurisdiction, a special assessment targets properties that directly receive the benefits from the improvement, thus allowing for a more equitable allocation of the associated costs. This means that only the property owners who stand to gain from the enhancement are responsible for paying the assessment.

The other choices do not accurately reflect the nature of a special assessment. General taxes apply to all properties, and fees for services are different in that they are charges for specific services rendered rather than improvements. A penalty for late tax payment is also unrelated, as it does not pertain to special assessments at all but rather to the consequences of failing to pay standard taxes on time.