What type of charge is a special assessment?

A special assessment is classified as a mandatory charge because it is imposed by local governments or municipalities on property owners to fund specific public projects that benefit the properties in the area, such as road improvements, sewer systems, or other infrastructure upgrades.

Property owners do not have the option to refuse or avoid paying these assessments; the charges are obligatory and legally enforceable. This means that if a property owner does not pay their special assessment, the local government can take actions such as placing a lien on the property.

In contrast, voluntary charges are those that a property owner chooses to engage in, like membership in a homeowners association that offers additional services. Permanent charges would imply a fixed, ongoing cost without a defined purpose for improvement, while temporary charges would indicate a limited duration or specific project. Thus, the nature of special assessments as mandatory makes them a distinct and necessary financial responsibility for benefiting property owners in a community.