Property Tax

Description: Property Tax Quiz
Number of Questions: 15
Created by:
Tags: economics taxation property tax
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What is the primary purpose of property tax?

  1. To generate revenue for local governments

  2. To regulate land use and development

  3. To promote economic growth

  4. To redistribute wealth


Correct Option: A
Explanation:

Property tax is a form of taxation levied on real estate, and its primary purpose is to generate revenue for local governments. This revenue is used to fund various public services, such as schools, roads, and parks.

Which of the following is NOT a common method of property tax assessment?

  1. Market value assessment

  2. Cost approach assessment

  3. Income approach assessment

  4. Replacement cost assessment


Correct Option: D
Explanation:

Replacement cost assessment is not a common method of property tax assessment. The three most common methods are market value assessment, cost approach assessment, and income approach assessment.

What is the term used to describe the periodic reassessment of property values for tax purposes?

  1. Revaluation

  2. Reappraisal

  3. Reassessment

  4. All of the above


Correct Option: D
Explanation:

Revaluation, reappraisal, and reassessment are all terms used to describe the periodic reassessment of property values for tax purposes.

Which of the following is NOT a common type of property tax exemption?

  1. Homestead exemption

  2. Senior citizen exemption

  3. Veteran's exemption

  4. Agricultural exemption


Correct Option: D
Explanation:

Agricultural exemption is not a common type of property tax exemption. The three most common types of property tax exemptions are homestead exemption, senior citizen exemption, and veteran's exemption.

What is the term used to describe the process of appealing a property tax assessment?

  1. Protest

  2. Appeal

  3. Challenge

  4. All of the above


Correct Option: D
Explanation:

Protest, appeal, and challenge are all terms used to describe the process of appealing a property tax assessment.

Which of the following is NOT a common type of property tax deferral program?

  1. Senior citizen deferral program

  2. Veteran's deferral program

  3. Disability deferral program

  4. First-time homebuyer deferral program


Correct Option: D
Explanation:

First-time homebuyer deferral program is not a common type of property tax deferral program. The three most common types of property tax deferral programs are senior citizen deferral program, veteran's deferral program, and disability deferral program.

What is the term used to describe the sale of property for unpaid property taxes?

  1. Tax sale

  2. Tax lien sale

  3. Foreclosure

  4. All of the above


Correct Option: D
Explanation:

Tax sale, tax lien sale, and foreclosure are all terms used to describe the sale of property for unpaid property taxes.

Which of the following is NOT a common type of property tax incentive?

  1. Property tax abatement

  2. Property tax credit

  3. Property tax exemption

  4. Property tax deferral


Correct Option: A
Explanation:

Property tax abatement is not a common type of property tax incentive. The three most common types of property tax incentives are property tax credit, property tax exemption, and property tax deferral.

What is the term used to describe the process of dividing a single property into two or more smaller properties?

  1. Subdivision

  2. Partition

  3. Zoning

  4. All of the above


Correct Option: A
Explanation:

Subdivision is the term used to describe the process of dividing a single property into two or more smaller properties.

Which of the following is NOT a common type of property tax assessment error?

  1. Incorrect property value

  2. Incorrect property classification

  3. Incorrect property ownership

  4. Incorrect property location


Correct Option: D
Explanation:

Incorrect property location is not a common type of property tax assessment error. The three most common types of property tax assessment errors are incorrect property value, incorrect property classification, and incorrect property ownership.

What is the term used to describe the legal right to use and occupy property?

  1. Possession

  2. Ownership

  3. Title

  4. All of the above


Correct Option: D
Explanation:

Possession, ownership, and title are all terms used to describe the legal right to use and occupy property.

Which of the following is NOT a common type of property tax lien?

  1. General lien

  2. Special assessment lien

  3. Mechanic's lien

  4. Mortgage lien


Correct Option: D
Explanation:

Mortgage lien is not a common type of property tax lien. The three most common types of property tax liens are general lien, special assessment lien, and mechanic's lien.

What is the term used to describe the process of transferring ownership of property from one person to another?

  1. Conveyance

  2. Deed

  3. Transfer

  4. All of the above


Correct Option: D
Explanation:

Conveyance, deed, and transfer are all terms used to describe the process of transferring ownership of property from one person to another.

Which of the following is NOT a common type of property tax rate?

  1. Flat rate

  2. Graduated rate

  3. Progressive rate

  4. Regressive rate


Correct Option: B
Explanation:

Graduated rate is not a common type of property tax rate. The three most common types of property tax rates are flat rate, progressive rate, and regressive rate.

What is the term used to describe the process of estimating the value of property for tax purposes?

  1. Assessment

  2. Appraisal

  3. Valuation

  4. All of the above


Correct Option: D
Explanation:

Assessment, appraisal, and valuation are all terms used to describe the process of estimating the value of property for tax purposes.

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