What is a tax against a property resulting from a public improvement that benefits it called?

A special assessment is a tax levied on properties that receive a specific benefit from a public improvement, such as the installation of sidewalks, street lighting, or sewer systems. This type of tax is not applied universally across all properties but is rather targeted towards those that directly benefit from the improvements made in their vicinity. The amount of the special assessment is typically based on the estimated increase in property value or the benefit received due to the enhancement of public infrastructure.

Understanding special assessments is essential in real estate, as they represent a clear financial responsibility for property owners who may be required to contribute to the costs associated with public projects that enhance the value of their property. This concept differs significantly from general taxes which fund broader public services without an established connection to specific benefits received by the taxpayer.