Fee and Special Assessment

Both fee and special assessment are collected to meet the expenses of common interest. There is direct quid-pro-quo in case of both. That means those who pay fee and special assessment derive direct benefit from the government. In spite of these similarities, both differ on the following points.

(i) Special assessment is once-for-all payment. But fees are paid for each recurring services. In other words, the number of times the fee payer avails the benefit or service, he has to pay the fee for each such service or benefit.

(ii) The sphere of special assessment is limited. It is a local tax imposed for the local improvement. But the sphere of fee is the whole country. To get a definite benefit or service anywhere in the country, fee will have to be paid.

(iii) Fees are imposed on the person who gets the special benefit or service. But special assessment is levied on the group who benefits from the local improvement. The person pays the special assessment as a member of the group.

(iv) Special assessment is a local tax. It is collected for the local improvement. Here there is no question of individual choice. For example provision of irrigation makes land double-cropped. If a farmer does not raise more than one crop in a year, still then he will have to pay the betterment levy. But if a person is prepared to sacrifice the benefit or service, he need not pay the fee.