What must be demonstrated to show a special assessment tax?

To establish a special assessment tax, it is essential to demonstrate that there is a direct benefit to the properties being assessed. This means that the funds collected from the special assessment will be used for improvements or services that specifically enhance the value, usefulness, or enjoyment of the properties within the designated area. The benefit must be tangible and clear, reflecting the direct relationship between the assessment and the advantages gained by the property owners.

For instance, if a local government levies a special assessment to fund road improvements, property owners who directly experience better access and safety as a result of these enhancements are seen to benefit from the tax. Thus, the properties assessed must receive a specific benefit that justifies the additional tax burden imposed on them.

This focus on direct benefits distinguishes a special assessment from general taxation, which is not necessarily tied to direct benefits received by the property owners.