Question 1

Jack Matthew bought a new diamond ring for $20,000. Sales tax is 5% with a 10% excise tax. The total price including taxes that Jack paid is:

Accepted Answer

A) $20,000 
B) $19,000 
C) $21,000 
D) $22,000 
E) None of these 
A) $20,000 
B) $19,000 
C) $21,000 
D) $22,000 
E) None of these E

Question 2

Assess value equals assessment rate × market value.

Accepted Answer

A) True 
 B)False  True

Question 3

Judy Ring purchased a watch with a retail price of $8,000. She would still have to pay a sales tax of 6% and an excise tax of 10%. Since the jeweler would be shipping this, there would be an additional $20 shipping charge. The total purchase price of this watch for Judy is:

Accepted Answer

A) $8,880 
B) $8,936 
C) $8,516 
D) $8,496 
E) None of these 
A) $8,880 
B) $8,936 
C) $8,516 
D) $8,496 
E) None of these E

Question 4

Mike's condo has a market value of $310,000. The property in Mike's area is assessed at 40% of the market value. The tax rate is $145.10 per $1,000 of assessed valuation. The tax for Mike is:

Accepted Answer

A) $16,992.40 
B) $7,999.30 
C) $7,999.40 
D) $17,992.40 
E) None of these 
A) $16,992.40 
B) $7,999.30 
C) $7,999.40 
D) $17,992.40 
E) None of these

Question 5

Sales tax usually is not taken on edible foods.

Accepted Answer

A) True 
 B)False

Question 6

Given a tax rate of $.0824 and an assessed valuation of $74,900, the total property tax due is:

Accepted Answer

A) $6,111.67 
B) $6,110.67 
C) $6,071.67 
D) $6,171.76 
E) None of these 
A) $6,111.67 
B) $6,110.67 
C) $6,071.67 
D) $6,171.76 
E) None of these

Question 7

Given a tax rate of $.8231 and total property tax due of $12,510, the total assessed valuation rounded to the nearest dollar is:

Accepted Answer

A) $1,519 
B) $150,199 
C) $15,199 
D) $5,199 
E) None of these 
A) $1,519 
B) $150,199 
C) $15,199 
D) $5,199 
E) None of these

Question 8

Kris bought a new fur coat for $8,000. She must pay 5% sales tax and 7% excise tax. The furrier is shipping the coat, so Kris must also pay a $15.00 insurance charge. What is the total purchase price of the coat?

Accepted Answer

A) $8,960 
B) $8,400 
C) $8,975 
D) $8,560 
E) None of these 
A) $8,960 
B) $8,400 
C) $8,975 
D) $8,560 
E) None of these

Question 9

The tax rate of $.0984 in decimal can be expressed as how many mills?

Accepted Answer

A) 9.84 
B) 90.84 
C) 98.4 
D) 9,840 
E) None of these 
A) 9.84 
B) 90.84 
C) 98.4 
D) 9,840 
E) None of these

Question 10

Sales tax at a supermarket in the District of Columbia is collected on:

Accepted Answer

A) Doughnuts 
B) Cereal 
C) Coffee 
D) Soap detergent 
E) None of these 
A) Doughnuts 
B) Cereal 
C) Coffee 
D) Soap detergent 
E) None of these

Question 11

The municipality of Waterloo needs $915,000 from property tax to meet its budget. The total value of assessed property in Waterloo is $14,000,000. What is the tax rate per dollar (round to nearest thousandths)?

Accepted Answer

A) $.071 
B) $.07 
C) $.0655 
D) $.065 
E) None of these 
A) $.071 
B) $.07 
C) $.0655 
D) $.065 
E) None of these

Question 12

Becky bought a new Apple computer for $1,205. The purchase price included a 6% sales tax. What is the actual selling price of the computer?

Accepted Answer

A) $1,132.08 
B) $1,277.30 
C) $1,200.00 
D) $1,136.79 
E) None of these 
A) $1,132.08 
B) $1,277.30 
C) $1,200.00 
D) $1,136.79 
E) None of these

Question 13

Best Buy has a warehouse with a market value of $5,000,000. The property in Best Buy's area is assessed at 40% of the commercial value. The tax rate is $105.10 per $1,000 assessed value. What does Best Buy pay in property tax?

Accepted Answer

A) $200,000 
B) $210,200 
C) $250,000 
D) $110,000 
E) None of these 
A) $200,000 
B) $210,200 
C) $250,000 
D) $110,000 
E) None of these

Question 14

Tax rates may be expressed only per $100 of assessed valuation.

Accepted Answer

A) True 
 B)False

Question 15

The home of Russell Slater is assessed at $140,000. The tax rate is 11.8 mills. The actual amount of tax on Russell's home is:

Accepted Answer

A) $1,562 
B) $1,652 
C) $1,462 
D) $1,362 
E) None of these 
A) $1,562 
B) $1,652 
C) $1,462 
D) $1,362 
E) None of these

Question 16

Usually assessed value is rounded to the:

Accepted Answer

A) Nearest cent 
B) Nearest tenth 
C) Nearest percent 
D) Nearest dollar 
E) None of these 
A) Nearest cent 
B) Nearest tenth 
C) Nearest percent 
D) Nearest dollar 
E) None of these

Question 17

The tax rate per dollar in a town can be calculated by dividing the total assessed value into:

Accepted Answer

A) Mills 
B) Budget needed 
C) Market value 
D) Appraised value 
E) None of these 
A) Mills 
B) Budget needed 
C) Market value 
D) Appraised value 
E) None of these

Question 18

In the community of Chesterfield, the market value of an average home is $180,000. The assessment rate is 35%. What is the assessed value?

Accepted Answer

A) $63,000 
B) $51,429 
C) $243,000 
D) $60,000 
E) None of these 
A) $63,000 
B) $51,429 
C) $243,000 
D) $60,000 
E) None of these

Question 19

Which of the following is subject to sales tax in the District of Columbia?

Accepted Answer

A) Roast beef 
B) Tomatoes 
C) Shampoo 
D) Milk 
E) None of these 
A) Roast beef 
B) Tomatoes 
C) Shampoo 
D) Milk 
E) None of these

Question 20

Total sales including sales tax divided by (100% + sales tax) equals actual sales.

Accepted Answer

A) True 
 B)False

Exam 19: Sales Excise and Property Taxes

Jack Matthew bought a new diamond ring for $20,000. Sales tax is 5% with a 10% excise tax. The total price including taxes that Jack paid is:

Assess value equals assessment rate × market value.

Judy Ring purchased a watch with a retail price of $8,000. She would still have to pay a sales tax of 6% and an excise tax of 10%. Since the jeweler would be shipping this, there would be an additional $20 shipping charge. The total purchase price of this watch for Judy is:

Mike's condo has a market value of $310,000. The property in Mike's area is assessed at 40% of the market value. The tax rate is $145.10 per $1,000 of assessed valuation. The tax for Mike is:

Sales tax usually is not taken on edible foods.

Given a tax rate of $.0824 and an assessed valuation of $74,900, the total property tax due is:

Given a tax rate of $.8231 and total property tax due of $12,510, the total assessed valuation rounded to the nearest dollar is:

Kris bought a new fur coat for $8,000. She must pay 5% sales tax and 7% excise tax. The furrier is shipping the coat, so Kris must also pay a $15.00 insurance charge. What is the total purchase price of the coat?

The tax rate of $.0984 in decimal can be expressed as how many mills?

Sales tax at a supermarket in the District of Columbia is collected on:

The municipality of Waterloo needs $915,000 from property tax to meet its budget. The total value of assessed property in Waterloo is $14,000,000. What is the tax rate per dollar (round to nearest thousandths)?

Becky bought a new Apple computer for $1,205. The purchase price included a 6% sales tax. What is the actual selling price of the computer?

Best Buy has a warehouse with a market value of $5,000,000. The property in Best Buy's area is assessed at 40% of the commercial value. The tax rate is $105.10 per $1,000 assessed value. What does Best Buy pay in property tax?

Tax rates may be expressed only per $100 of assessed valuation.

The home of Russell Slater is assessed at $140,000. The tax rate is 11.8 mills. The actual amount of tax on Russell's home is:

Usually assessed value is rounded to the:

The tax rate per dollar in a town can be calculated by dividing the total assessed value into:

In the community of Chesterfield, the market value of an average home is $180,000. The assessment rate is 35%. What is the assessed value?

Which of the following is subject to sales tax in the District of Columbia?

Total sales including sales tax divided by (100% + sales tax) equals actual sales.

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