Final answer:
The Federal Government is prohibited from collecting taxes on real property; local entities like counties, townships, and cities impose such taxes.
Step-by-step explanation:
The entity that is prohibited from collecting taxes on real property is D) The Federal Government. Property taxes are usually imposed by local entities such as counties, townships, and cities. These taxes are based on the value of real estate held by individuals or corporations. While the federal government can impose income taxes, as per Amendment XVI of the U.S. Constitution, it does not have the authority to collect property taxes at the federal level.
The Federal Government is prohibited from collecting taxes on real property. Property taxes are typically collected by municipal governments (such as counties, townships, and cities) in the United States.