What type of tax is imposed against specific parcels of real estate that will benefit from public improvements?

The correct answer is a special assessment. This type of tax is levied specifically against certain parcels of real estate to fund public improvements that will directly benefit those properties. For instance, if a city installs new sidewalks or streetlights in a neighborhood, a special assessment may be imposed on the properties that will primarily benefit from these upgrades. This ensures that the cost of the improvements is borne by those who receive the direct advantage of the better infrastructure, rather than the public at large, which is typically the case with general taxes or municipal taxes.

Understanding the nature of special assessments is crucial for real estate professionals because it impacts property values and buyer decisions. Since these taxes are associated with specific improvements in the community, property owners can expect their property values to increase as a result of enhanced local amenities.