Final answer:
The correct statement regarding special assessments and ad valorem taxes is that delinquent payments could be grounds for the sale of the property. Ad valorem taxes are based on property value while special assessments fund specific projects, with payment failure potentially resulting in the sale of the property.
The correct option is D. Delinquent payments could be grounds for the sale of the property.
Step-by-step explanation:
Which of the following is true regarding special assessments and ad valorem taxes? The answer is D. Delinquent payments could be grounds for the sale of the property. Special assessments and ad valorem taxes differ in their approach to taxation. While ad valorem taxes are based on the assessed value of property, special assessments are often levied to fund specific projects that benefit the residents of a particular area. Details of these can be quite nuanced and vary by jurisdiction.
It is important to note that property taxes are typically progressive, implying that they affect those with higher incomes more so than those with lower incomes since property ownership is concentrated among higher-income groups. Local governments rely on property tax revenue to fund a variety of services and programs. However, this reliance can be problematic due to the visibility and lump sum collection of property taxes, as well as the volatility of property values and the presence of tax-exempt entities.
The concept of benefits principle taxation implies that those who benefit from services should pay in proportion to those benefits. On the other hand, the ability to pay principle suggests that those who are more capable of bearing tax burdens should contribute more. Nonetheless, it is the failure to pay these taxes on time that could lead to the enforced sale of the property to recover delinquent tax payments.
The correct option is D. Delinquent payments could be grounds for the sale of the property.