The government levied a gift tax on the transfer of the house from Tim to his sister.
Explanation:
1. A gift tax is imposed by the government when a person transfers ownership of property to someone else without receiving payment in return.
2. In this case, since Tim gave his house to his sister without any payment involved, it falls under the category of a gift.
3. The government requires individuals to pay taxes on gifts given to ensure that the value of the gift is taken into account for tax purposes.
4. Estate tax is a tax on the transfer of property upon a person's death, not applicable in this scenario.
5. Excise tax, property tax, and sales tax are not directly related to the transfer of ownership of a house as a gift.