Alabama Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

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What are property taxes categorized as?

Ad valorem taxes

Property taxes are categorized as ad valorem taxes, which means they are based on the assessed value of a property. Option B, federal income taxes, are based on one's income, not property. Option C, sales taxes, are based on the purchase of goods and services, not on property ownership. Option D, customs duties, are taxes on imports and exports, not related to property ownership. Therefore, the only correct answer option is A, ad valorem taxes.

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Federal income taxes

Sales taxes

Customs duties

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