Taxes on Real and Personal Property

Property taxes are primarily imposed by state and local governments on the assessed value of real and personal property. These taxes support local services like police, fire departments, and schools. Property taxes can be levied annually or as a one-time payment, often known as ad valorem taxes. The right to impose these taxes is granted by federal and state constitutions, although the federal government typically does not levy property taxes.

What is the primary purpose of property taxes imposed by state and local governments?

• To discourage property ownership

• To increase the value of real estate

• To support local functions like police and schools

• To fund federal government projects

What is an ad valorem tax?

• A tax based on the assessed value of property

• A tax imposed only on luxury items

• A tax that is paid only once in a lifetime

• A tax that is the same for all properties

How can ad valorem taxes be paid?

• Only when the property is sold

• Either annually or as a one-time payment

• Only annually

• Only as a one-time payment

Which level of government is primarily responsible for imposing property taxes?

• Private companies

• International organizations

• State and local governments

• Federal government

Does the federal government typically impose property taxes?

• Yes, it is the main source of federal revenue

• No, but it has the power to do so

• Yes, but only in certain states

• No, it is prohibited by the Constitution