What is a "real property tax"?

A "real property tax" refers to taxes levied by local governments on property ownership, which are typically calculated based on the assessed value of the property. This type of tax is used to fund various public services such as schools, infrastructure, and public safety. Property tax assessments are generally conducted periodically to reflect changes in property values, and the tax is usually a percentage of that assessed value.

The other choices do not accurately define real property tax. For instance, suggesting that only landlords pay these taxes is misleading, as real property taxes are typically assessed on all property owners, including homeowners. Similarly, taxes associated solely with commercial properties do not encompass the entirety of real property taxes, as they apply to residential and agricultural properties as well. Lastly, fees associated with property transactions, such as closing costs or transfer taxes, are distinct from real property taxes, which are ongoing taxes related to ownership rather than fees for buying or selling property. Thus, the accurate understanding of real property tax aligns with the definition provided in the correct choice.