Series 7 Exam Question 271: Answer and Explanation

Question: 271

Which of the following governmental bodies receives no revenue from ad-valorem taxes?

• A. County governments
• B. State governments
• C. School districts
• D. Local municipalities

Correct Answer: B

Explanation:

B. Remember that state governments do not collect ad-valorem (property) taxes. Ad-valorem taxes are assessed by local governments (for example, towns and counties). Generally, state governments receive the most income from income taxes and sales taxes.