Funds to pay for SID programs and services are generated from a special assessment paid by the benefited property owners. (Note: Many leases have a clause that allows property owners to pass the SID assessment on to their tenants.) The assessment is billed and collected by the Municipal government and then disbursed to the SID, which in turn delivers the District services.
A SID assessment is a fee that each property owner pays to support the operations of the SID. The sum of all the individual assessments that property owners pay comprises the total yearly assessment of the SID, and underwrites most, if not all, annual operating expenses. The total yearly assessment is unique to each SID. The amount paid by each property owner is determined by a formula that each SID creates for its district during the formation process. Formulas are based upon property size and or value.
Different properties may pay different assessments depending upon their type of zoning classification. For instance, commercial, business and retail properties are all assessed at 100 % of the assessment rate established. Not-for-profit owned and occupied properties generally do not pay an assessment, but may be charged a fee. City, State and or Federal Properties do not pay an assessment. Each district decides on their own how they will assess their unique different property classifications. A business that operates out of a residential property is usually assessed at a lower percentage of the full assessment but is assessed nonetheless.