Final answer:
The correct option is c) Market value
The type of property tax based on the property's value is called ad valorem tax, calculated based on the market value assessed by local governments or tax officials.
Step-by-step explanation:
The type of property tax based on the value of the property is known as ad valorem tax. This tax is calculated by determining the market value of the property (which includes houses, gardens, mills, fields, vineyards, etc.). Local governments or tax assessors are typically responsible for evaluating the worth of a property and then imposing a tax rate proportionate to this value.
Ad valorem taxes are common because they are based on the principle that the amount you pay is proportional to the value of the property. This means that if the economic health of a region rises or falls, or if certain properties become more or less desirable, the tax imposed will reflect these changes.
Municipal governments rely on these taxes for revenue, and while the system has its drawbacks, such as the visibility of the large lump sum and variances dependent on economic health, it is a widely used method of taxation on real estate held by individuals or corporations.