Which term refers to a local tax levied against a property for a specific purpose?

The term that refers to a local tax levied against a property for a specific purpose is "Assessment." An assessment is a value determined by a local municipality or tax authority that establishes the amount of tax to be collected from property owners for specific projects or services, such as street improvements, water lines, or community enhancements. This amount is often based on the property’s value or a flat rate assigned to properties within a certain area.

In contrast, the other terms listed have different meanings. A tax lien is a legal claim against a property due to unpaid taxes, which can lead to a forced sale of the property to satisfy the debt. A deduction typically refers to an expense that can be subtracted from gross income when calculating taxable income. A levy, while also a tax-related term, generally refers to the legal seizure of property in order to satisfy a tax debt, rather than the process of taxing for specific local improvements. Understanding these distinctions clarifies why "Assessment" is the most appropriate term in this context.