An example of a tax based on benefits received is the _______ tax.
A) personal income
B) sales
C) marginal
D) property

Question

Quizplus · Accepted Answer

Property tax is a tax levied by the government on real estate, based on its value. Property owners benefit from services such as street maintenance, police, and fire protection, and schools. The property tax system is designed so that property owners pay taxes directly proportional to the benefits they receive from these services. Therefore, it is an example of a tax based on benefits received. Personal income tax, sales tax, and marginal tax are not specifically based on benefits received, but rather on income or consumption.

An Example of a Tax Based on Benefits Received Is