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!

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What are property taxes categorized as?

Ad valorem taxes
Federal income taxes
Sales taxes
Customs duties

The correct answer is: 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.