Final answer:
Land transfer tax is applied to the purchase price of property during the ownership transfer, which is true. Property taxes, which include land transfer tax, are crucial for local government revenue, varying by rules and rates.
Step-by-step explanation:
Land transfer tax is indeed applied to the purchase price of the property at the time of the transfer of ownership or acquisition of a beneficial interest in real estate. This statement is true. Land transfer tax is a part of property taxes, which are a major source of revenue for local governments.
Property value assessments determine how much tax an individual or business should pay. While property taxes are generally considered progressive since property ownership is concentrated among higher income groups, the application of these taxes can vary widely depending on jurisdictional rules and rates.