Under portability when the new home is less expensive, the tax levies described are used for what purpose?

• A. Prop Tax
• B. Sales Tax
• C. Income Tax
• D. Special Assessment Tax

Answer: (D)

The key idea here is that special assessments are charges set aside to pay for specific local improvements that benefit the property or neighborhood—things like street paving, sidewalks, drainage, street lighting, or sewer work. These levies are tied to the property and stay with it, funding targeted projects rather than general government expenses. Portability affects the Save Our Homes benefit for property taxes, not how special assessments are used. So the described tax levies are used to finance those local improvements that benefit the area.