DEFINITION of 'Special Assessment Tax'

The levy assessed against the portion of a property that has been condemned by a public authority. The special assessment tax will reduce the amount of compensation awarded to the property owner because the owner is considered to have also benefited from the improvement.

BREAKING DOWN 'Special Assessment Tax'

A public authority can only make a partial condemnation it needs to make way for a public improvement. If the amount of the tax exceeds the compensation, then the difference is added to the basis of the property.

RELATED TERMS
  1. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  2. Property Management

    The administration of residential, commercial and/or industrial ...
  3. Levy

    The legal seizure of property to satisfy a debt. In the U.S., ...
  4. Tax Lien Foreclosure

    The sale of a property resulting from the property owner's failure ...
  5. Tax Sale

    The sale of property that results when a taxpayer reaches a certain ...
  6. Ad Valorem Tax

    A tax based on the assessed value of real estate or personal ...
Related Articles
  1. Investing

    Your Property Tax Assessment: What Does It Mean?

    The amount of a property tax bill is based on the property’s value, the exemptions it qualifies for, its use and the local property tax rate.
  2. Investing

    How Property Taxes Are Calculated

    Property taxes are calculated through use of the mill levy and the assessed property values.
  3. Taxes

    What is an Ad Valorem Tax?

    An ad valorem tax is a levy placed on real or personal property based on the assessed value of that property.
  4. Taxes

    The 7 Best States For Property Taxes, and Why

    Understand why some states have high property taxes while others have low property taxes. Learn about the states with the lowest property taxes.
  5. Taxes

    Getting U.S. Tax Deductions On Foreign Real Estate

    If your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.
  6. Taxes

    4 Little-Known Ways to Reduce Your Property Taxes

    Here are little-known ways you can reduce your property tax liability.
  7. Taxes

    How to Reduce Your High Property Taxes

    Think your property taxes are too high? Here's some advice on how to get your home reassessed, using New Jersey property taxes as an example.
  8. Taxes

    Taking Advantage Of Property Tax Abatement Programs

    Increase your home's value without increasing your property taxes.
RELATED FAQS
  1. How are real estate taxes calculated?

    Find out how real estate taxes are calculated; failure to pay these taxes that can be a substantial annual expense can lead ... Read Answer >>
Hot Definitions
  1. Life Insurance

    A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the ...
  2. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price ...
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  4. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
Trading Center