The level of government that actually levies real estate taxes is?

The correct choice indicates that real estate taxes are primarily levied by county and local governments. This is because taxation authority over property generally resides at the local level, where governments such as counties, municipalities, and townships create tax assessments based on property values within their jurisdictions. Counties and localities assess and collect these taxes to fund essential services, such as schools, police protection, infrastructure, and other public services.

While state governments may have some roles in property taxation, including establishing the framework for tax rates and assessing processes, they do not directly levy these taxes. The federal government does not levy real estate taxes at all, focusing instead on income taxes and other federal revenue sources. The city also participates in local taxation but is not exclusive to this function, as counties encompass broader jurisdictional responsibilities that include multiple cities and towns. Hence, the involvement of both county and local governments is the critical factor in real estate taxation.