Question 1

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 D

Question 2

Carol Reeve bought a new fur coat for $12,000. She must pay a 7.5% sales tax and a 10% excise tax. The furrier is shipping the coat, so Carol must also pay a $30 shipping charge. What is the total purchase price of the coat?

Accepted Answer

$14,130

Question 3

The market value of a home is $260,000. The assessed rate is 45%. What is the assessed value?

Accepted Answer

$117,000

Question 4

Calculate assessed value:
Given: property tax $5,200; 32 mills tax rate

Accepted Answer

$5,200 / .

Question 5

Jen Rich bought a new Toyota for $18,200 that included a 5% sales tax. The actual cost of the car (round to the nearest dollar)before the tax is:

Accepted Answer

A) $17,334 
B) $17,333 
C) $17,335 
D) $19,110 
E) None of these 
A) $17,334 
B) $17,333 
C) $17,335 
D) $19,110 
E) None of these

Question 6

Bea Bonnet bought a new Apple computer for $1,250.99. This price included a 6% sales tax. What is the actual selling price before the tax as well as the sales tax amount?

Accepted Answer

$1,250.99 / 1.06 = $

Question 7

Calculate amount of tax due:
 $$\begin{array} { | l | l | l | } 
\hline \text { Tax Rate } & \text { Assessed Value } & \text { Tax Due } \
\hline \$ 12.75 \text { per } \$ 100 & \$ 15,800 & \text { A } \
\hline \$ 92.70 \text { per } \$ 1,000 & \$ 69,200 & \text { B } \
\hline 23 \text { Mills } & \$ 205,000 & \text { C } \
\hline
\end{array}$$

Accepted Answer

A. $2,014.

Question 8

In the portion formula, total assessed valuation in the calculation of property tax due is the portion.

Accepted Answer

A) True 
 B)False

Question 9

The county of Rolly needs $910,000 from property tax to meet its budget requirements. The total value of assessed property in Rolly is $150,000,000. What would the tax rate of Rolly be (to five decimal places)? Express the rate in mills. (Round off to two decimal positions if necessary.)

Accepted Answer

$910,000 / $150,000,

Question 10

Excise tax is not applied to:

Accepted Answer

A) Distilled spirits 
B) Beer 
C) Wine 
D) Doughnuts 
E) None of these 
A) Distilled spirits 
B) Beer 
C) Wine 
D) Doughnuts 
E) None of these

Question 11

Ford Motor Company decided against building a new plant in California because of the high cost of taxes. The state of California proposed an assessed rate of 52% of the estimated market value of the plant. The tax rate proposal was $233.00 per $1,000 of assessed value. What would Ford Motor pay in property taxes per year if it decided to build a $25 million plant?

Accepted Answer

$25,000,000 × .52 =

Question 12

The home of Al Gard is assessed at $70,000. The tax rate is 6.15 mills. What is the tax on Al's home?

Accepted Answer

6.15 mills

Question 13

Excise tax is only on goods or services that are luxury items.

Accepted Answer

A) True 
 B)False

Question 14

Assessed valuation is equal to the assessment rate:

Accepted Answer

A) Divided by the market value 
B) Times the book value 
C) Times the market value 
D) Plus the market value 
E) None of these 
A) Divided by the market value 
B) Times the book value 
C) Times the market value 
D) Plus the market value 
E) None of these

Question 15

Total property tax due is equal to the tax rate times the total assessed valuation.

Accepted Answer

A) True 
 B)False

Question 16

Sales tax rates are:

Accepted Answer

A) The same in all states 
B) Different in many states 
C) Exempt from all businesses 
D) Not used by retailers, only wholesalers 
E) None of these 
A) The same in all states 
B) Different in many states 
C) Exempt from all businesses 
D) Not used by retailers, only wholesalers 
E) None of these

Question 17

Due to a change in assessment, Saint Louis County raised its assessed rate to 40%. The average price of a home in the county is $179,000. What will the average household assessment be in Saint Louis County?

Accepted Answer

$179,000 ×

Question 18

Alfred Slide owns a toy store in which there is a state sales tax of 4%. For the week of December 9, sales were $154,000. Assuming that his sales did not include sales tax, what would have been Alfred's tax liability?

Accepted Answer

$154,000 ×

Question 19

Calculate the total purchase price:
Given: retail price $30,000; Sales tax 7%; Excise tax 10%

Accepted Answer

7% + 10% =

Question 20

The budget for Sunset Hills, Missouri, is approximately $68 million. The total assessed value of all property in Sunset Hills is $558 million. What is the tax rate per dollar in Sunset Hills?

Accepted Answer

$68,000,000 / $558,0

Exam 19: Sales, Excise, and Property Taxes

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

Carol Reeve bought a new fur coat for $12,000. She must pay a 7.5% sales tax and a 10% excise tax. The furrier is shipping the coat, so Carol must also pay a $30 shipping charge. What is the total purchase price of the coat?

The market value of a home is $260,000. The assessed rate is 45%. What is the assessed value?

Calculate assessed value: Given: property tax $5,200; 32 mills tax rate

Jen Rich bought a new Toyota for $18,200 that included a 5% sales tax. The actual cost of the car (round to the nearest dollar)before the tax is:

Bea Bonnet bought a new Apple computer for $1,250.99. This price included a 6% sales tax. What is the actual selling price before the tax as well as the sales tax amount?

Calculate amount of tax due: Tax Rate Assessed Value Tax Due \ 12.75 per \ 100 \ 15,800 A \ 92.70 per \ 1,000 \ 69,200 B 23 Mills \ 205,000 C

In the portion formula, total assessed valuation in the calculation of property tax due is the portion.

The county of Rolly needs $910,000 from property tax to meet its budget requirements. The total value of assessed property in Rolly is $150,000,000. What would the tax rate of Rolly be (to five decimal places)? Express the rate in mills. (Round off to two decimal positions if necessary.)

Excise tax is not applied to:

The home of Al Gard is assessed at $70,000. The tax rate is 6.15 mills. What is the tax on Al's home?

Excise tax is only on goods or services that are luxury items.

Assessed valuation is equal to the assessment rate:

Total property tax due is equal to the tax rate times the total assessed valuation.

Sales tax rates are:

Due to a change in assessment, Saint Louis County raised its assessed rate to 40%. The average price of a home in the county is $179,000. What will the average household assessment be in Saint Louis County?

Alfred Slide owns a toy store in which there is a state sales tax of 4%. For the week of December 9, sales were $154,000. Assuming that his sales did not include sales tax, what would have been Alfred's tax liability?

Calculate the total purchase price: Given: retail price $30,000; Sales tax 7%; Excise tax 10%

The budget for Sunset Hills, Missouri, is approximately $68 million. The total assessed value of all property in Sunset Hills is $558 million. What is the tax rate per dollar in Sunset Hills?

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Life, Fire, and Auto Insurance

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters