1/20/2011 SEWER COMMISSION Minutes

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BETTERMENTS AND SPECIAL ASSESSMENTS Assessment and Collection Procedures I. NATURE OF ASSESSMENT A. Special Property Tax A betterment or special assessment is a special property tax that is permitted where real property within a limited and determinable area receives a special benefit or advantage, other than the general advantage to the community, from the construction of a public improvement. If properties abutting or nearby the improvement are specially benefited, all or a portion of the cost of making that improvement may be assessed on those properties. Union Street Ry. v. Mayor of New Bedford, 253 Mass. 304 (1925). B. Assessment Standard Assessments of the project costs must be reasonable and proportional and not substantially in excess of the special benefits received from the improvement. 1. Definition: A special benefit is defined as an enhancement of the value or use of property due to the construction of the improvement. 2. Measurement: A special benefit is measured by how much the particular improvement has increased the fair market value of the property, as between a willing buyer and seller considering all present and future uses to which the property is or may be reasonably adapted in the hands of any owner. Driscoll v. Northbridge, 210 Mass. 151, 155 (1911);Union Street Ry. at 309-312. C. Exemptions Properties owned by governmental entities for public purposes are exempt from betterments and special assessments, but individuals, and charitable, religious or other organizations, ordinarily eligible for full or partial exemptions from annual property taxes are not exempt. IL AUTHORITY TO LEVY ASSESSMENTS The Commonwealth, a county, city, town or district must have statutory authority to impose a betterment or special assessment for a public improvement. A. Betterments The cost of all or a portion of a public improvement made upon formal order or vote of a board of officers of the Commonwealth, a county, city, town or district may be assessed as betterments. G.L. Ch. 80 §1. This typically applies to improvements involving eminent domain takings such as street layouts.