A specified area rate is a property tax rate applied only to properties within a defined geographic area, funding services or improvements specific to that area. Different areas within a municipality may have different specified area rates reflecting different service levels—urban areas with sidewalks, streetlights, and transit might have higher rates than rural areas without those services. Specified area rates ensure residents pay for services they actually receive rather than subsidizing services in other areas. Establishing specified area rates requires clearly defining boundaries, identifying services to be funded, and calculating appropriate rates. This approach promotes fairness and transparency in municipal taxation by connecting service costs to the properties benefiting from those services.