What is meant by the term "property tax"?

The term "property tax" specifically refers to a tax that is levied based on the value of owned properties, which is why the selected answer is accurate. Property taxes are usually assessed by local governments, including counties and municipalities, to generate revenue for public services such as schools, infrastructure maintenance, and emergency services.

The assessment of property tax is typically calculated from the fair market value of the property, allowing the governing body to determine how much tax the property owner needs to pay annually. This process often involves periodic assessments where the value of the property is evaluated to ensure that the tax reflects current market conditions.

In contrast to the correct answer, the other options discuss different types of taxes that do not align with the definition of property tax. For instance, taxes on rental income, real estate commissions, or property sales transactions pertain to different aspects of real estate and finance, indicating why they don't fit the definition of property tax.