Real property taxes are imposed based on
A)The historical cost of the real estate
B)The net book value of the real estate
C)The current fair market value of the real estate
D)The current fair market value of the real estate, net of accumulated depreciation
E)None of the above

Question

Quizplus · Accepted Answer

Real property taxes are imposed based on the current fair market value of the real estate. This is because property taxes are meant to be a reflection of the value of the property being taxed, and the fair market value is the most accurate representation of that value. Historical cost and net book value may be used for accounting or financial reporting purposes, but they are not relevant to determining property taxes. Depreciation is also not a factor in determining property taxes, as it is a non-cash expense and therefore not relevant to the actual value of the property.

Real Property Taxes Are Imposed Based on