Which government power is exercised when a county imposes an annual levy on real property and can enforce it if unpaid?
Correct Answer
C) Taxation
The power to tax real property has been retained by the states and delegated to local government, with legal remedies available if taxes are not paid. Police power regulates use, eminent domain takes property with compensation, and escheat applies to unclaimed property.
Why This Is the Correct Answer
Option C is correct because the power to tax real property has been retained by the states and delegated to local governments, and legal remedies are available when taxes are not paid. A county's annual levy that can be enforced if unpaid is an exercise of this taxation power.
Why the Other Options Are Wrong
Option A: Police power
Option A, police power, is wrong because police power regulates the use of property for public health, safety and welfare, such as zoning. It does not describe an annual revenue levy.
Option B: Eminent domain
Option B, eminent domain, is wrong because eminent domain takes private property for public use with compensation. An annual levy does not take the property.
Option D: Escheat
Option D, escheat, is wrong because escheat transfers ownerless property to the state, such as when an owner dies with no will and no heirs. It is not an annual levy.
Levy means taxation
When the government charges you yearly for owning property, that is taxation in the PETE set of government powers.
How to use: Use this when a question describes a recurring charge on real property.
Exam Tip
Match the action to its purpose: revenue points to taxation, regulation points to police power, taking points to eminent domain, and no heirs points to escheat.
Common Mistakes to Avoid
- -Confusing taxation with police power
- -Thinking eminent domain covers annual levies
- -Mixing up escheat with tax foreclosure
Concept Deep Dive
Analysis
This question tests identifying the government power behind a recurring property levy. An annual charge on real property that can be enforced when unpaid is a tax. The other powers regulate use, take property for public use or claim property without heirs.
Background Knowledge
Property taxes fund local services and are based on assessed values. If owners do not pay, the government can use remedies such as tax liens and tax sales, which is why unpaid taxes affect title.
Real-World Application
During a title review, an appraiser sees a lien for several years of unpaid county property taxes. She recognizes this as the county enforcing its taxation power and notes it may affect the property's marketability.
More Market Questions
In market area analysis, what characteristic distinguishes a district from a neighborhood?
Under USPAP Standards Rule 1-3(a), which item must an appraiser identify and analyze when necessary for credible results in a market value assignment?
How does the Fannie Mae Selling Guide define a neighborhood?
Several homes in a neighborhood are vacant and boarded up. Which market force does Fannie Mae classify this as?
Infrastructure investment such as a new interchange typically affects nearby land by:
A city raises property tax rates and tightens building regulations. Which market force does Fannie Mae classify these as?
An appraiser believes, without market evidence, that a nearby group home lowers values. What does Fannie Mae require?
Which three categories are used to report the supply of properties in a Fannie Mae neighborhood section?
An appraiser is asked for a retrospective value opinion as of three years ago. When must the appraiser meet the Competency Rule?
Can mixed land uses in a residential neighborhood ever enhance home values, according to Fannie Mae?
People Also Study
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam