A betterment levy is a tax that the state collects on a plot of land that its actions have in some

way made 'better'. For instance, if building roads, metros or airports with public money leads to
an appreciation in land prices in the vicinity of these projects, then landowners enjoy a windfall
gain.

Since the betterment project presumably benefits nearby property owners rather than the
community as a whole, a portion of the cost associated with the project might be levied against
their property in the form of a betterment tax. Different taxing jurisdictions use their own
methods for calculating the apportionment of betterment taxes to the affected property owners,
which might include the amount of frontage abutting the project and the total cost of the project.

As the owner is bettered through no merit of his own, he gains by the betterment, and hence
by taxation or otherwise, the increased value shall come into the pocket of the public rather than
into the owner's. Projects that qualify as improvements will depend on the taxing jurisdiction.
Examples of improvements might include new roads or sidewalks in a particular neighborhood.
Repairing an existing road or maintaining an existing sidewalk are typically not considered
improvements and would not usually result in a betterment tax assessment.