Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How is the rate for property taxes determined?

Annually, regardless of appraisal schedule
Biannually with income tax
Only during property appraisal years
Based on the property's purchase price only

The correct answer is: Annually, regardless of appraisal schedule

Property taxes are determined annually, regardless of whether or not the property is in an appraisal year. This means that the tax rate is recalculated every year, taking into consideration any changes in the property value and tax laws. Option B is incorrect because property taxes are not related to income taxes and are determined separately. Option C is incorrect because while property taxes may be recalculated during appraisal years, they are not solely determined during those years. Finally, option D is incorrect because property taxes are based on the assessed value of the property, not just the purchase price.