Wisconsin Special Improvement Project and Assessment
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FAQ
A special assessment is an additional fee that is levied by a condominium association on top of regular condominium fees to cover unexpected expenses or make up for a shortfall in the reserve fund.
Note: In Wisconsin, buyers typically assume the cost of the future or pending assessments. Sellers will typically pay an assessment that has already been levied.
Neither taxes nor special assessments are paid by the acquiring authority during its period of ownership. Once a property is sold, the new buyer will be responsible for tax payments and special assessment responsibilities prorated from the date of the purchase.
Sometimes, the terms of a mortgage loan obtained by the buyer will require the seller to pay all special assessments which have been levied by the closing date ? even if they are not payable in the current year.
A special assessment tax is a surtax levied on property owners to pay for specific local infrastructure projects such as the construction or maintenance of roads or sewer lines. The tax is charged only to the owners of property in the neighborhood that will benefit from the project.
Wisconsin Stat. sec 66.0707(1) authorizes a municipality to levy a special assessment on property in an adjacent city, village or town, if the property benefits from the work or improvement. However, such a levy must be approved by resolution of the governing body of the municipality where the property is located.
