Alabama Real Estate Practice Exam

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What is a special assessment?

  1. A federal income tax audit

  2. A levy against properties benefiting from public improvements

  3. An emergency tax for natural disasters

  4. A tax for new property owners only

The correct answer is: A levy against properties benefiting from public improvements

A special assessment is a levy or charge placed on properties that benefit from public improvements, such as the construction of new roads or sidewalks. It is not a federal income tax audit, as that is a different type of tax-related process. It also is not an emergency tax for natural disasters, as that would only be applicable in specific situations. Finally, it is not a tax for new property owners only, as it applies to all properties that benefit from the public improvement.

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