Final answer:
Property taxes, special assessments, and fines and forfeits are examples of government revenue transactions, with property tax being a significant source of local government funding based on the fair market value of real estate.
Step-by-step explanation:
Property taxes, special assessments, and fines and forfeits are all examples of government revenue transactions. Property taxes are a form of local tax imposed on the value of real estate, including homes, land, and businesses, and they are a primary source of revenue for local governments. These taxes fund various services like police and fire departments, park maintenance, and potentially state school systems.
Property tax rules and rates vary widely, but they are generally based on the fair market value of property. However, reliance on property tax revenue can be problematic due to the visibility and unpopularity of large lump-sum payments, as well as property values varying with economic conditions and legal limits on raising property taxes. Significant areas of a city may be tax-exempt, such as properties occupied by nonprofit organizations, which poses additional funding challenges for local governments.