Property OwnershipIntermediateDelaware Exam

What is the difference between 'real property' taxes and 'personal property' taxes in Delaware?

AReal property taxes always apply only to buildings themselves; personal property taxes always apply only to raw land instead, according to common practice
BReal property taxes are assessed on land and improvements (real estate); personal property taxes are assessed on movable property like business equipmentCorrect
CReal property taxes are levied by the state; personal property taxes by the county
DThere is no meaningful distinction under Delaware law

Why Real property taxes are assessed on land and improvements (real estate); personal property taxes are assessed on movable property like business equipment Is Correct

Answer B: Real property taxes are assessed on land and improvements (real estate); personal property taxes are assessed on movable property like business equipment

Real property taxes (ad valorem taxes) are assessed on land and permanent improvements. Personal property taxes apply to movable items like business equipment and vehicles.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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