Economics 1 Test

Question

How is the amount of property taxes that a person owes determined?

 

 

A. The local government levies property taxes based on the person's credit score.

B. The state government levies property taxes based on the person's taxable income.

C. The local government levies property taxes based on the value of real estate that a person owns.

D. The state government levies property taxes based on the length of time a person has owned their home.

Answer 1

Property tax is levied by local and state governments in the US. It is calculated by multiplying the tax rate by the assessed value of the property. For example, say your state has a 5% property tax rate and you own a home worth $200,000. Your property tax bill would be 0.05 X $200,000 = $10,000