Certified Government Financial Manager (CGFM) 2026 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 875

What type of tax is least likely to be applied to office furniture owned by a business?

Personal property

Real property

Office furniture owned by a business is classified as personal property rather than real property. Real property typically encompasses land and buildings, which are fixed and immovable. In contrast, personal property includes movable items like furniture, equipment, and inventory that are not permanently attached to the real estate.

When it comes to the types of taxes applicable to office furniture, personal property tax is directly related to items owned by a business. Use tax may apply if the business purchases the furniture from another jurisdiction where the sales tax was not applied. Excise tax, however, is levied on specific goods, such as gasoline or tobacco, rather than on general items like office furniture.

Understanding these classifications helps clarify why real property tax is least likely to apply to office furniture; it's simply not the category to which this type of asset belongs.

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