Certified Government Financial Manager (CGFM) 2025 – 400 Free Practice Questions to Pass the Exam

Imposed tax revenues refer to taxes that are levied directly on individuals or entities by government authorities. These taxes are often considered as mandatory contributions to the state, rather than fees or charges for specific services.

Property tax and estate tax are both excellent examples of imposed taxes. Property tax is assessed on real estate properties based on their value, which is determined by local governments. It is obligatory for property owners to pay this tax, and the revenue generated is used to fund public services such as education, infrastructure maintenance, and public safety.

Estate tax, on the other hand, is levied on the transfer of property after death. It is imposed on the value of an estate before the assets are distributed to heirs, thereby making the tax a direct obligation tied to the value of the estate itself.

In contrast, sales tax is usually considered a transactional tax, while payroll tax is collected from employees' wages and employers’ contributions for social security and Medicare, indicating that those taxes are not directly imposed in the same manner as property and estate taxes. Similarly, income tax and excise tax are more dependent on monetary transactions, while franchise tax and capital gains tax reflect different revenue structures.

This distinction assists in understanding the mechanics of government revenue collection and the nature