The Amount of Ad Valorem Real Property Taxes Is Determined

question 16

Multiple Choice

The amount of ad valorem real property taxes is determined by the:

• A) assessed value of the property and the tax rate
• B) sale price of the property and the tax rate
• C) taxable value of the property and the tax rate

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Definitions:

Market Value

The ongoing cost at which an asset or service can be traded or acquired in a market setting.

Small Stock Dividend

A distribution of additional shares of a company's stock to shareholders at no extra cost, typically less than 25% of the existing shares.

Board of Directors

A group of individuals elected by shareholders to oversee the activities and direction of a company, ensuring it operates in their best interest.

Retained Earnings

Profits that a company has kept or retained rather than distributing to shareholders as dividends.