California Real Estate Practice Exam

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Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

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The term ad valorem usually is associated with?

Property taxes
Sales taxes
Income taxes
Business taxes

The correct answer is: Property taxes

Ad valorem is a Latin term that means "according to value." It is typically associated with property taxes because these taxes are based on the assessed value of real estate. Property taxes are paid by property owners and are usually used to fund local government services like schools, roads, and public safety. Option B, sales taxes, are based on the amount of goods or services purchased, not on the value of the property. Option C, income taxes, are based on the amount of income earned, not on the value of the property. Option D, business taxes, can refer to a variety of taxes such as corporate income taxes or business property taxes, but none of these are specifically based on the value of the property. Overall, ad valorem is most closely associated with property taxes because it reflects the value of the property being taxed.