American Institute of Certified Planners (AICP) Practice Exam

What do Special Assessments allow for in terms of public improvements?

1. Assessing all citizens equally

2. Implementing a sales tax increase

3. Assessing a particular group for costs

4. Raising funds through volunteer contributions

The correct answer is: Assessing a particular group for costs

Special assessments are a financing mechanism that enables local governments to collect funds specifically from property owners who stand to benefit from a particular public improvement, such as the construction of a new road, sidewalk, or sewer system. This concept is rooted in the idea of cost recovery, where those who directly benefit from the improvement contribute towards its costs. By allowing assessments to be levied only on a particular group—typically property owners whose properties are located in close proximity to the improvement—this approach ensures that the funding mechanism reflects the direct beneficiaries of the project. This method promotes fairness since only those who gain from the enhancement contribute to its funding, rather than spreading the financial burden across the entire tax base or community. Other options do not accurately represent the purpose of special assessments. For instance, assessing all citizens equally would lack the targeted approach of special assessments. Implementing a sales tax increase pertains to a broader method of taxation that affects all consumers rather than specific property owners. Raising funds through volunteer contributions does not align with the structured and obligatory nature of special assessments and would not suffice to cover the costs associated with public improvements.