Sonya buys a parcel of land and pays taxes on it for five years. After she builds a home on it, the taxes she'll pay are:

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Study for the Washington Real Estate Fundamentals Rockwell Exam. Utilize flashcards, multiple choice questions with hints and explanations. Prepare thoroughly for your real estate career!

Multiple Choice

Sonya buys a parcel of land and pays taxes on it for five years. After she builds a home on it, the taxes she'll pay are:

Explanation:
Ad valorem taxes are the ongoing property taxes assessed based on the value of real estate. In Washington, property taxes go up or down with the assessed value of the parcel (land plus any improvements). Once Sonya builds a home, the property's value increases, so the annual taxes are recalculated as ad valorem taxes on that higher value. Special assessments are for specific public improvements that benefit the property (and are not the general annual tax), transfer taxes are due on the transfer of ownership, and income taxes relate to earnings rather than real estate ownership.

Ad valorem taxes are the ongoing property taxes assessed based on the value of real estate. In Washington, property taxes go up or down with the assessed value of the parcel (land plus any improvements). Once Sonya builds a home, the property's value increases, so the annual taxes are recalculated as ad valorem taxes on that higher value. Special assessments are for specific public improvements that benefit the property (and are not the general annual tax), transfer taxes are due on the transfer of ownership, and income taxes relate to earnings rather than real estate ownership.

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