Texas Crammer Practice Exam

What is not a common use of property taxes?

1. Funding local schools

2. Building infrastructure

3. Real estate investments

4. Emergency services funding

The correct answer is: Real estate investments

Property taxes primarily serve as a revenue source for various public services and community needs. One of the main uses of property taxes is funding local schools, ensuring that educational institutions have necessary resources. Additionally, they contribute to the building and maintenance of infrastructure, such as roads and public transportation systems, which are essential for community development and safety. Emergency services, which include police and fire departments, also rely heavily on property tax revenues to provide effective emergency response and ensure public safety. On the other hand, real estate investments are generally not financed through property taxes. Rather, property taxes are a cost associated with owning real estate, rather than a direct use or benefit derived from them. Individuals or entities engage in real estate investments to generate profit, but this activity does not directly involve the use of property tax revenues. As a result, real estate investments stand out as the option that does not align with the common uses of property taxes.