What type of tax is levied according to property value in real estate?

The correct answer is the general real estate tax, which is a tax based on the assessed value of real property. This type of tax is typically levied annually and is a primary source of revenue for local governments. The funds generated from real estate taxes are used for essential services such as education, public safety, infrastructure, and community services. The amount of tax you pay is determined by the tax rate applied to your property's assessed value.

When a property is assessed, its market value is established, and a percentage is determined based on local government guidelines. This assessed value is then multiplied by the applicable tax rate to calculate the amount owed. The general real estate tax is an essential concept in real estate as it affects property ownership costs and financial planning for property buyers and investors.