Special taxes are taxes levied by local governmental entities for special purposes¹. Typically they’re levied against real property². Accordingly, the proceeds may be used solely for the represented purpose or service for which the tax was imposed. Taxes that would be general taxes may be special taxes if the proceeds are to be used for a specific or specific purpose(s).

“Property owners within the district are assessed a portion of the benefit accruing to their property as a result of the improvement (constructed). The special benefit can be determined in a variety of ways ranging from the anticipated increase in property value; the size of a property owner’s frontage or acreage; or, the proximity of the property to an improvement. Property owners either pay the assessment immediately, or allow a lien to be placed on their property and repay the assessment over a prescribed timeframe, typically ten or twenty years. Most often, the special assessment is collected at concurrently with owners’ property tax payments.”²

And now you know!

1. Go to https://debtguide-api.treasurer.ca.gov/guide-pages/chapter-1-legally-incurring-debt-state-law-restrictions-on-public-agency-debt-and-revenues/1-4-local-government-revenue-sources-security-for-and-repayment-of-debt/1-4-6-special-taxes.
2. Go to https://www.fhwa.dot.gov/ipd/fact_sheets/value_cap_special_assessments.aspx.