Final answer:
Property occupied by nonprofit organizations, such as colleges and churches, is one type of property exempted from taxation by the Constitution.
Step-by-step explanation:
One type of property that is exempted from taxation by the Constitution is property occupied by certain nonprofit organizations, such as colleges and churches. Significant parcels of land in many cities are tax-exempt, including property that these nonprofit organizations use. For example, in Boston, almost 50 percent of the assessed value of property is tax-exempt. This presents a challenge for municipalities, especially college towns, as it impacts the potential revenue that could be generated through property taxes.