Michigan Real Estate Exam Practice Question
A new road is to be built for the benefit of adjacent property owners. This improvement will most likely be paid for by:
Correct Answer: B
Rationale: Building a new road primarily benefits adjacent property owners, making option B the most appropriate choice. A special assessment directly charges those who benefit from the improvement, ensuring that costs are fairly allocated.
Option A, a new city shopping home, does not relate to funding road construction. Option C, a general tax, spreads costs across all taxpayers, which is less equitable since only adjacent owners benefit. Option D, an appropriation from the city’s general fund, could divert resources from other essential services and does not target those who directly benefit from the road. Thus, option B is the most logical and fair funding method.
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