Which, If Any, of the Following Transactions Will Decrease a Taxing

question 47

Multiple Choice

Which, if any, of the following transactions will decrease a taxing jurisdiction's ad valorem tax revenue imposed on real estate?

• A)A tax holiday is granted to an out-of-state business that is searching for a new factory site.
• B)An abandoned church is converted to a restaurant.
• C)A public school is razed and turned into a city park.
• D)A local university sells a dormitory that will be converted for use as an apartment building.
• E)None of these.

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Definitions:

Commercial Transactions

The exchange of goods, services, or funds in a business context, often governed by legal regulations and agreements.

Strictly Applied

Refers to the rigorous enforcement or adherence to rules, laws, or principles without deviation or exception.

Consideration

Consideration refers to something of value that is exchanged between parties in a contract, making the agreement legally binding.

Gross Inadequacy

A significant disparity or insufficiency, often relating to an offer’s value in a contractual agreement, which may lead to questioning the fairness of the contract.