Which, if any, of the following is a typical characteristic of an ad valorem tax on personalty?
A)Taxpayer compliance is greater for personal use property than for business use property.
B)The tax on automobiles sometimes considers the age of the vehicle.
C)Most states impose a tax on intangibles.
D)The tax on intangibles generates considerable revenue since it is difficult for taxpayers to avoid.
E)None of the above.

Question

Quizplus · Accepted Answer

Ad valorem taxes on personal property, such as automobiles, often consider the age of the property as a factor in determining the tax amount. This is because older property is typically worth less than newer property and therefore should be taxed less. Option A is incorrect because compliance rates would not necessarily differ based on personal or business use. Option C is incorrect because while some states may impose a tax on intangibles, it is not a typical characteristic of an ad valorem tax on personalty. Option D is also incorrect as it is not necessarily true that a tax on intangibles would generate considerable revenue or be difficult for taxpayers to avoid.

Which, If Any, of the Following Is a Typical Characteristic