New York State Real Estate Salesperson Licensing Exam

Which group is usually exempt from property taxes?

1. First-time homebuyers

2. Second home owners

3. Disabled, veterans, farmers, elderly, and Gold Star parents

4. Real estate investors

The correct answer is: Disabled, veterans, farmers, elderly, and Gold Star parents

The group that is usually exempt from property taxes includes disabled individuals, veterans, farmers, the elderly, and Gold Star parents. This exemption exists because these individuals often face unique financial burdens or have served the community or country in significant ways. For instance, veterans may have been disabled due to their service, and providing property tax relief can help ease their financial obligations. Similarly, benefits extended to elderly citizens aim to help them maintain their homes and live independently, especially if they are on fixed incomes. While first-time homebuyers or second homeowners may benefit from various types of assistance or tax breaks, they do not typically receive outright exemptions from property taxes. Real estate investors, likewise, are subject to property taxes as they are generating income through their properties. Therefore, the provision of property tax exemptions specifically targets those who have social or financial needs and recognizes their contributions or hardships.