Special assessment is defined as a unique charge that government units can assess against real estate property for various public projects.
A main condition of a special assessment is that they can only be levied against real estate property in the event that the property receives an immediate and specific benefit from the public project. These pieces of property which are charged this special assessment must fall within a Special Assessment District, or S.A.D.
The most common special assessments are levied for things such as installing drinking water and sewer lines or paving streets with concrete. Other special assessments that can be levied against property within an S.A.D. are things such as police and fire stations, street lighting and parking structures. There are also many other feature that can be charged a special assessment in the event the state and local government statutes allow them.
One other distinct feature of special assessments is how they affect an S.A.D. The district itself increases in market value, and by extension, the tax accrued for living in the designated area increases to compensate for the work being done.
If you have any additional questions about special assessments, feel free to contact us to speak with a licensed agent.