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What Are Special Assessments?

Special assessments are levies imposed on specific properties to cover the cost of public improvements or services that enhance the value or utility of those properties. In Kansas, they are authorized under various statutes, such as K.S.A. 12-6a01 et seq. (for general improvements) and other city-specific laws.Key Characteristics of Special Assessments:

1. Purpose:
   • Fund infrastructure or services like street paving, sidewalks, sewers, water lines, street lighting, or storm drainage systems.
   • Cover costs of specific projects that benefit a defined group of properties, unlike general taxes that fund broader government operations.
2. Property-Specific:
   • Assessments are tied to the benefited property, not the owner, and are based on the proportional benefit (e.g., front footage, square footage, or property value).
   • For example, a property fronting a newly paved street may be assessed a portion of the project cost based on its frontage.
3. Payment Structure:
   • Special assessments can be paid in a lump sum or in installments over several years (often 10–20 years), typically with interest.
   • If unpaid, they become a lien on the property, similar to unpaid property taxes, and can lead to foreclosure proceedings.
4. Legal Basis:
   • Authorized by Kansas statutes, such as K.S.A. 12-6a02 (general improvement and assessment law) or K.S.A. 12-601 (street improvements).
   • Cities must follow statutory procedures, including public hearings and property owner notifications, before imposing assessments.

Examples of Special Assessments:

• Infrastructure: A city installs a new sewer line and assesses properties along the line for their share of the cost.
• Maintenance: A city charges properties for weed removal, demolition of unsafe structures, or other nuisance abatement under K.S.A. 12-1617f or similar laws.
• Community Improvement Districts: Properties in a designated district may be assessed for enhancements like parking facilities or beautification projects.

Special Assessments in K.S.A. 79-2801Under K.S.A. 79-2801, special assessments are relevant because they often represent a financial interest for the city in properties subject to tax foreclosure. Here's how they tie into the statute and city assistance:

1. City's Financial Stake:
   • When a property has delinquent special assessments, the city has a lien on the property, alongside the county's lien for unpaid property taxes.
   • These unpaid assessments are included in the foreclosure petition filed by the county attorney to ensure the city recovers its share of the debt.
2. City Assistance in Foreclosure:
   • As part of the city's assistance, it provides the county with documentation of unpaid special assessments (e.g., amounts owed, project details, and lien status).
   • The city may work with the county to ensure the foreclosure action accounts for these assessments, increasing the total lien amount to be satisfied through the property sale.
   • For example, if a property owes $5,000 in county property taxes and $2,000 in city sewer assessments, the foreclosure petition would seek to recover the full $7,000, plus interest and costs.
3. Distribution of Sale Proceeds:
   • After the property is sold in a judicial foreclosure under K.S.A. 79-2801 et seq., proceeds are distributed according to statutory priorities (see K.S.A. 79-2804).
   • Special assessments are typically treated as liens on par with property taxes, meaning the city and county share the proceeds after court costs and other priority claims are paid.
4. Impact on Property Owners:
   • Property owners can redeem the property before the foreclosure sale by paying all delinquent taxes, assessments, interest, and costs.
   • If the property is sold, the foreclosure extinguishes the special assessment lien, and the city recovers its share from the sale proceeds.

Practical Details

• Assessment Process:
  • Cities determine the cost of a project and apportion it among benefited properties, often after a public hearing.
  • Property owners receive notice of the proposed assessment and can object or appeal under statutory procedures (e.g., K.S.A. 12-6a04).
  • Once finalized, the assessment is certified to the county clerk and added to the property's tax bill.
• Delinquency and Liens:
  • If a property owner fails to pay the assessment (or an installment), it becomes delinquent and constitutes a lien on the property, enforceable through foreclosure.
  • The county typically collects both property taxes and special assessments, but the city retains an interest in the latter.
• City's Role in Foreclosure:
  • The city may identify properties with significant delinquent assessments and request that the county prioritize them for foreclosure.
  • The city provides legal and financial documentation to support the foreclosure petition, ensuring its liens are included.
  • In some cases, cities may negotiate with counties to cover part of the foreclosure costs to expedite the process.

Why Special Assessments Matter in Foreclosure

• Revenue Recovery: Special assessments fund critical local improvements, and their collection ensures cities can continue such projects.
• Property Maintenance: Delinquent properties often overlap with blighted or neglected parcels, and foreclosure can facilitate redevelopment.
• Equity: Including special assessments in foreclosure ensures all lienholders (county and city) are treated fairly in recovering owed amounts.

Accessing Further InformationTo dive deeper into special assessments and their role in K.S.A. 79-2801:

• Review Statutes: Check K.S.A. 12-6a01 et seq. (general improvements and assessments), K.S.A. 12-601 et seq. (street improvements), or K.S.A. 12-1617f (nuisance abatement) for rules on imposing and enforcing assessments. These are available at www.ksrevisor.gov.
• Local Ordinances: Cities like Wichita or Topeka may have specific ordinances governing assessments, accessible through city clerk offices or municipal websites.
• County or City Officials: Contact the county treasurer, county attorney, or city finance department for details on how special assessments are handled in a specific jurisdiction.

Example ScenarioSuppose a property in Topeka owes $3,000 in delinquent county property taxes and $1,500 in unpaid special assessments for a city sidewalk project. Under K.S.A. 79-2801:

• The county attorney files a foreclosure petition, and Topeka assists by providing records of the $1,500 assessment lien.
• The court includes both amounts in the foreclosure action, totaling $4,500 plus interest and costs.
• If the property is sold for $10,000 at a sheriff's sale, the proceeds are used to pay court costs first, then the county's taxes and the city's assessments, with any remainder distributed per statutory rules.

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Henry McClure 

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