ABSTRACT
A special assessment is a fee that that many local governmental units in the United States impose on specific properties in a geographic area in the jurisdiction. Unlike a tax, which does not require a proportionality between the benefit received and the amount of tax paid, the theory behind special assessments is that only those who benefit from an improvement or a service should share in its costs. Special assessments are appropriate when the beneficiaries from the project can be identified and when the benefits can be measured. Special assessments are mostly used to finance public improvements; however, many jurisdictions in the United States also use special assessments to recover the costs for services. Like taxes, special assessment processes and procedures vary from state to state. Compared to other revenue sources, they are easier to impose and administer. Nevertheless, special assessments have some drawbacks. The discussion in this entry includes a general overview of special assessments, history of special assessments, differences between a special assessments and taxes, and advantages and disadvantages of special assessments.
