Unit 9 Exam: Applications to Property Tax

Question 1

Which of these types of property tax is based on the value of the property being taxed?

a. general real estate tax
b. special assessment
c. general assessment
d. ad value tax

Answer 1

a. general real estate tax (p. 119)

• also called, ad valorem tax
• ad valorem taxes are based on the value of the property being taxed and are specific, involuntary, statutory liens

Question 2

County or township appraisers perform official valuations of properties through a process called:

a. tax rating
b. tax waivers
c. general taxing
d. assessment

Answer 2

d. assessment (p. 121)

real estate is valued for tax purposes by county or township assessors or appraisers through a process called assessment.

Question 3

A tax charged on real estate to fund public improvements in a specified area area called:

a. general real estate taxes
b. special assessments
c. tax waivers
d. tax levy

Answer 3

b. special assessments (p. 123)

a special assessment is a tax charged on real estate to fund public improvements to the property, and it creates a lien for the amount of the assessment on the property.

-property owners in the improvement area must pay for the improvements because their properties benefit directly from them. ex: construction of paved streets, curbs, gutters, sidewalks, storm sewers, street lighting