Define "revenue neutral" in terms of property tax.

Revenue neutral refers to a situation where a tax rate is adjusted in such a way that it does not increase the total amount of tax revenue collected, even if property values change. This concept is particularly relevant in the context of property tax, where fluctuations in property assessments due to varying market values can impact the overall taxation landscape.

When property values rise, a revenue neutral tax rate would decrease accordingly to ensure that the total revenue collected remains the same as it was before the increase. Conversely, if property values decline, the tax rate might increase to maintain that same level of total revenue. This mechanism ensures that property owners are not burdened with higher taxes merely due to an increase in property assessment if the goal is to maintain stable funding for public services and local government budgets.

The other options refer to different aspects of taxation that do not align with the concept of revenue neutrality. For example, adjusting tax rates according to inflation reflects an intention to increase revenue rather than maintain it at a stable level despite changes in property values. Similarly, applying a tax rate equally to all property classes does not account for the revenue neutrality aspect, nor does the idea of eliminating taxes for certain property types align with the goal of keeping total revenue unchanged.