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

question 107

Multiple Choice

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

• A)A resident dies and leaves his farm to his church.
• B)A large property owner issues a conservation easement as to some of her land.
• C)A tax holiday issued 10 years ago has expired.
• D)A bankrupt motel is acquired by the Red Cross and is to be used to provide housing for homeless persons.
• E)None of the above.

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Definitions:

Annuity

A fiscal instrument offering steady payment distributions, often serving as a revenue source for those in retirement.

Compounded Monthly

Interest calculation method where the accumulated interest is added to the principal at the end of each month, leading to "interest on interest".

RRSP

A Registered Retirement Savings Plan, a tax-deferred retirement savings account available in Canada.

Annuity

A financial instrument designed to offer a steady flow of income to someone, mainly used for retirement purposes.