Question 1

Property tax in Canada is predominately a provincial tax.
A)True
B)False
C)Uncertain

Accepted Answer

Property tax in Canada is primarily a municipal tax, not a provincial tax. Municipalities levy property taxes to fund local services.

Question 2

In the traditional view, evidence suggests the structures part of the property tax is probably
A)progressive.
B)regressive.
C)neither regressive nor progressive.
D)zero.

Accepted Answer

C

Question 3

The three views of the property tax are not mutually exclusive alternatives; each may be valid in different contexts.
A)True
B)False
C)Uncertain

Accepted Answer

The statement is true because the three views of property tax can coexist and be applicable in different situations, reflecting the complexity and multifaceted nature of property taxation.

Question 4

In the traditional view, the property tax on structures creates inefficiency by discouraging new construction and repairs to the existing stock of buildings.
A)True
B)False
C)Uncertain

Accepted Answer

The traditional view holds that property taxes on structures can lead to inefficiency by increasing the cost of building and maintaining structures, thus discouraging new construction and repairs.

Question 5

The property tax receives criticism because
A)it is highly visible.
B)it is perceived as regressive.
C)it is levied on an estimated value.
D)all of these answers are correct.

Accepted Answer

The property tax is criticized for being highly visible, perceived as regressive, and levied on an estimated value, making all the options correct.

Question 6

Taxes on have not been used in Canada.
A)net wealth
B)capital
C)wages
D)real property

Accepted Answer

Canada has not implemented a net wealth tax, although there have been discussions about it.

Question 7

The new view is that property tax is a(n)
A)uniform tax.
B)capital tax.
C)user fee.
D)excise tax on land and structures.

Accepted Answer

The answer of The new view is that property tax...

Question 8

The new view of the property tax uses a standard partial equilibrium framework.
A)True
B)False
C)Uncertain

Accepted Answer

The answer of The new view of the property tax...

Question 9

Statistics Canada estimated that the top 10 percent of wealth holders owned of wealth in Canada in 2012.
A)48 percent
B)71 percent
C)10 percent
D)99 percent

Accepted Answer

The top 10 percent of wealth holders owned 48 percent of wealth in Canada in 2012.

Question 10

Property tax as a user fee implies that
A)tax revenue is zero.
B)the burden is borne by landowners.
C)the burden is borne by owners of capital.
D)the property tax creates no excess burden.

Accepted Answer

Property tax as a user fee suggests that it is a payment for the benefits received from public services, implying no excess burden as it aligns with the benefits principle of taxation.

Question 11

In the traditional view, the supply curve of structures is
A)perfectly vertical.
B)perfectly horizontal.
C)upward sloping.
D)downward sloping.

Accepted Answer

The answer of In the traditional view, the supply curve...

Question 12

Assessment ratios differ systematically for different types of property.
A)True
B)False
C)Uncertain

Accepted Answer

The answer of Assessment ratios differ systematically for different types...

Question 13

The assessed value of a home is
A)always lower than its market value.
B)the annual rate of deprecation of a home because of use.
C)an annual 6% increase in the value of a home.
D)the value that the jurisdiction uses to assign taxes.

Accepted Answer

The assessed value of a home is the value that the local government or jurisdiction uses to determine property taxes.

Question 14

An estate tax reflects the market value of a property.
A)True
B)False
C)Uncertain

Accepted Answer

The answer of An estate tax reflects the market value...

Question 15

There is no federal property tax in Canada.
A)True
B)False
C)Uncertain

Accepted Answer

Canada does not have a federal property tax; property taxes are levied by local governments such as municipalities and provinces.

Question 16

The traditional view is that property tax is a(n)
A)uniform tax.
B)capital tax.
C)user fee.
D)excise tax on land and structures.

Accepted Answer

Property tax is a tax on land and structures, which are forms of capital.

Question 17

In the traditional view, the property tax that falls on structures shifts the entire burden to the
A)government.
B)bank.
C)landowners.
D)tenants.

Accepted Answer

The answer of In the traditional view, the property tax...

Question 18

In the traditional view, the burden of the property tax that falls on land that cannot be varied falls completely on the landowner.
A)True
B)False
C)Uncertain

Accepted Answer

In the traditional view, land is considered a fixed supply, meaning its quantity cannot be changed. Therefore, the burden of property tax on land falls entirely on the landowner, as they cannot pass it on to others.

Question 19

The assessment ratio is
A)the tax liability to the tax rate.
B)the ratio of assessed value to market value.
C)the sale value at death to the market value.
D)always lower than the market ratio.

Accepted Answer

The assessment ratio is the ratio of the assessed value of a property to its market value.

Question 20

An example of a stock variable is
A)consumption.
B)sales.
C)wealth.
D)income.

Accepted Answer

A stock variable is measured at one specific time and represents a quantity existing at that point, such as wealth.

Quiz 20: Taxes on Wealth and Property

Property tax in Canada is predominately a provincial tax.

In the traditional view, evidence suggests the structures part of the property tax is probably

The three views of the property tax are not mutually exclusive alternatives; each may be valid in different contexts.

In the traditional view, the property tax on structures creates inefficiency by discouraging new construction and repairs to the existing stock of buildings.

The property tax receives criticism because

Taxes on have not been used in Canada.

The new view is that property tax is a(n)

The new view of the property tax uses a standard partial equilibrium framework.

Statistics Canada estimated that the top 10 percent of wealth holders owned of wealth in Canada in 2012.

Property tax as a user fee implies that

In the traditional view, the supply curve of structures is

Assessment ratios differ systematically for different types of property.

The assessed value of a home is

An estate tax reflects the market value of a property.

There is no federal property tax in Canada.

The traditional view is that property tax is a(n)

In the traditional view, the property tax that falls on structures shifts the entire burden to the

In the traditional view, the burden of the property tax that falls on land that cannot be varied falls completely on the landowner.

The assessment ratio is

An example of a stock variable is