Alabama Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

Property taxes are determined annually, regardless of whether or not the property is in an appraisal year. This means that the tax rate is recalculated every year, taking into consideration any changes in the property value and tax laws. Option B is incorrect because property taxes are not related to income taxes and are determined separately. Option C is incorrect because while property taxes may be recalculated during appraisal years, they are not solely determined during those years. Finally, option D is incorrect because property taxes are based on the assessed value of the property, not just the purchase price.