REAL ESTATE LICENSING EXAM - LEVEL 18: TAXES
AND ASSESSMENTS EXAM QUESTIONS WITH RIGHT
ANSWERS| LATEST UPDATE .
Taxes - correct Answers -Government-established costs charged involuntarily to corporations or
individuals. Property taxes apply to land and improvements.
Property taxes generally focus their funds on these four public-service categories: - correct Answers -1)
Uniform agencies (such as police, firefighters, sanitation, and correctional facilities): 31%
2) Education: 29%
3) Health and welfare: 19%
4) Other public services (such as transportation, housing initiatives, parks): 21%
Is New York's property tax rate higher or lower when compared to other states? - correct Answers -
Higher!!
*However, NYC's property tax rate is about half the tax rate of the rest of the state
Use Tax - correct Answers -If you make a large, tax-free purchase on your vacation in Wisconsin, and if
that purchase would have been taxed if you had bought it in New York, you will have to pay a use tax on
that purchase (even though you bought it tax-free in Wisconsin).
-Only applies to certain, bigger purchases. For example, New York states that more inexpensive clothing
or shoes (valued under $110) brought into the state are exempt from the 4% New York State sales tax.
But purchases above $110 are subject to a 4.5% New York City Sales Tax and a 4% New York State Sales
Tax.
Lien - correct Answers -a right to the possession of a property by someone other than the owner
(typically lender) until a legal duty is satisfied by the owner (typically paying off the loan)
-ex. lien on house or lien on car when paid with a loan
Which lien takes highest priority? - correct Answers -Property tax liens
1
, There are five resulting tax jurisdictions, or areas with their own special tax rules: - correct Answers -1)
City
2) Town
3) Village
4) County
5) State
*Each jurisdiction will have different options for how and when property taxes are paid.
Which of the following jurisdictions does not issue property taxes in New York? - correct Answers -States
4 qualities of property tax - correct Answers -1) All-Inclusive (all property owners pay them, whether you
live there or not)
2) Protected (housing is necessary)
3) Dependable (easy to predict)
4) Easy (property is stable and hard to conceal)
Complete tax exemptions are usually awarded to the following categories of real property (10): - correct
Answers -1) Port Authority
2) Indian reservations
3) Hospitals
4) Religious organizations
5) Parks
6) Schools (including colleges and universities)
7) State and federal governments
8) Airports
9) Embassies or consulates
10) Not-for-profit organizations (NFP)
2
AND ASSESSMENTS EXAM QUESTIONS WITH RIGHT
ANSWERS| LATEST UPDATE .
Taxes - correct Answers -Government-established costs charged involuntarily to corporations or
individuals. Property taxes apply to land and improvements.
Property taxes generally focus their funds on these four public-service categories: - correct Answers -1)
Uniform agencies (such as police, firefighters, sanitation, and correctional facilities): 31%
2) Education: 29%
3) Health and welfare: 19%
4) Other public services (such as transportation, housing initiatives, parks): 21%
Is New York's property tax rate higher or lower when compared to other states? - correct Answers -
Higher!!
*However, NYC's property tax rate is about half the tax rate of the rest of the state
Use Tax - correct Answers -If you make a large, tax-free purchase on your vacation in Wisconsin, and if
that purchase would have been taxed if you had bought it in New York, you will have to pay a use tax on
that purchase (even though you bought it tax-free in Wisconsin).
-Only applies to certain, bigger purchases. For example, New York states that more inexpensive clothing
or shoes (valued under $110) brought into the state are exempt from the 4% New York State sales tax.
But purchases above $110 are subject to a 4.5% New York City Sales Tax and a 4% New York State Sales
Tax.
Lien - correct Answers -a right to the possession of a property by someone other than the owner
(typically lender) until a legal duty is satisfied by the owner (typically paying off the loan)
-ex. lien on house or lien on car when paid with a loan
Which lien takes highest priority? - correct Answers -Property tax liens
1
, There are five resulting tax jurisdictions, or areas with their own special tax rules: - correct Answers -1)
City
2) Town
3) Village
4) County
5) State
*Each jurisdiction will have different options for how and when property taxes are paid.
Which of the following jurisdictions does not issue property taxes in New York? - correct Answers -States
4 qualities of property tax - correct Answers -1) All-Inclusive (all property owners pay them, whether you
live there or not)
2) Protected (housing is necessary)
3) Dependable (easy to predict)
4) Easy (property is stable and hard to conceal)
Complete tax exemptions are usually awarded to the following categories of real property (10): - correct
Answers -1) Port Authority
2) Indian reservations
3) Hospitals
4) Religious organizations
5) Parks
6) Schools (including colleges and universities)
7) State and federal governments
8) Airports
9) Embassies or consulates
10) Not-for-profit organizations (NFP)
2
