Deck 19: Sales, Excise, and Property Taxes

Question 1

Sales tax is taken on shipping charges.

Answer 1

False

Question 2

A mill is 1/10 of a cent.

Answer 2

True

Question 3

Assessed value equals assessment rate × market value.

Answer 3

True

Question 4

Sales tax is never rounded to the nearest cent.

Question 5

Sales tax usually is not taken on edible foods.

Question 6

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

Question 7

Sales tax is required in all states.

Question 8

Tax rates may be expressed in more than one way.

Question 9

The tax rate per dollar is never rounded up.

Question 10

Excise tax is a tax paid in addition to sales tax.

Question 11

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

Question 12

Sales tax is charged on prescription drugs in most states.

Question 13

Sales tax is not taken on trade discounts but is taken on cash discounts.

Question 14

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

Question 15

Excise tax is based on a percent of the retail price of a product or service.

Question 16

In the portion formula, the sales tax represents the portion.

Question 17

To represent the number of mills as a tax rate per dollar, the tax rate is multiplied by 0.001.

Question 18

Excise tax and sales tax are really the same tax.

Question 19

Sales tax is collected by wholesalers.

Question 20

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

Question 21

Given a tax rate of $0.0824 and an assessed valuation of $74,900, the total property tax due is:

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

Question 22

A tax rate of $0.0711 in decimal expressed per $1,000 of assessed valuation is equal to:

A)$71.1
B)$7.11
C)$0.0711
D)$0.00711
E)None of these

Question 23

Personal property items do not include:

A)Jewelry
B)Land
C)Autos
D)Furniture
E)None of these

Question 24

Which of the following are examples of items excluded from excise tax?

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

Question 25

Sales tax rates are:

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 26

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

Question 27

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:

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

Question 28

Excise tax is not applied to:

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

Question 29

The tax rate of $0.0984 in decimal can be expressed as how many mills?

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

Question 30

Usually assessed value is rounded to the:

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

Question 31

Given a tax rate of $0.8231 and total property tax due of $12,510, the total assessed valuation rounded to the nearest dollar is:

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

Question 32

A home with a market value of $240,000 is assessed at 40% of the market value. The assessed value is:

A)$144,000
B)$96,000
C)$69,000
D)$9,600
E)None of these

Question 33

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

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

Question 34

Sales tax is taken on:

A)Trade discounts
B)Cash discounts
C)Shipping charges
D)Selling price minus trade discount
E)None of these

Question 35

The tax rate of $0.6943 in decimal can be expressed per $100 as:

A)$6.943
B)$69.43
C)$690.3
D)$69.43 mills
E)None of these

Question 36

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

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

Question 37

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

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

Question 38

Assessed valuation is equal to the assessment rate:

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 39

Total sales of $400,000 that included a 6% sales tax yields actual sales of:

A)$42,800
B)$37,537.58
C)$377,358.49
D)$48,200
E)None of these

Question 40

Tax rate per dollar is calculated by taking the budget needed divided by the total assessed value.

Question 41

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?

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

Question 42

Bill Jones bought a fishing rod that sells for $70 subject to a 6% sales tax and an excise tax of 10%. The total amount Bill paid for the rod is:

A)$77.00
B)$74.20
C)$81.20
D)$75.00
E)None of these

Question 43

If the market value of an average home is $180,000, and the assessment rate is 35% what is the assessed value?

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

Question 44

Match the following terms with their definitions.

-Market value

A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 45

The market value of a home is $190,000. If the assessment rate is 45%, the assessed value is:

A)$542,857
B)$292,308
C)$85,500
D)$85,505
E)None of these

Question 46

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:

A)$9,300
B)$8,936
C)$9,280
D)$8,496
E)None of these

Question 47

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:

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

Question 48

Match the following terms with their definitions.

-Mills

A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 49

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:

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

Question 50

Bill Shass pays a property tax of $5,800. In his community, the tax rate is 48 mills. Bill's assessed valuation to the nearest dollar is:

A)$278,400
B)$120,338
C)$278,004
D)$120,833
E)None of these

Question 51

The county of Blue needs $800,000 from property tax to meet its budget requirements. The total value of assessed property in Blue is $140,000,000. The tax rate of Blue in mills to nearest hundredth is (be sure to round the tax rate to the nearest hundred thousandth before converting to mills):

A)5.71
B)57.24
C)571.24
D)17.50
E)None of these

Question 52

The building of Jim's Hardware is assessed at $109,000. The tax rate is $86.95 per $1,000 of assessed valuation. The tax due is:

A)$9,477.55
B)$947.75
C)$8,695.45
D)$8,659.54
E)None of these

Question 53

Moe Blunt came into Jan's Hardware Store and purchased a hammer for $16.75 plus a 5% tax. The total sales plus tax was:

A)$17.55
B)$17.54
C)$17.56
D)$17.62
E)None of these

Question 54

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:

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

Question 55

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?

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

Question 56

Match the following terms with their definitions.

-Tax rate per dollar

A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 57

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?

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

Question 58

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

A)0.071
B)0.07
C)0.0655
D)0.066
E)None of these

Question 59

Match the following terms with their definitions.

-Excise tax

A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 60

Match the following terms with their definitions.

-Assessed valuation

A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 61

John's Market is assessed for $95,000. The current tax rate is $92.45 per $1,000 of assessed value. Calculate the tax due.

Question 62

Complete (express answers to nearest hundredth):
$$\begin{array} { | l | l | l | l | l | } \hline \text { Decimal Tax Rate } & \% & \text { Per } \$ 100 & \text { Per } \$ 1000 & \text { Mills } \\\hline 074312 & \text { A } & \text { B } & \text { C } & \text { D } \\\hline\end{array}$$

Question 63

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?

Question 64

The market value of a home is $180,000. The assessment rate is 35%. What is the assessed value?

Question 65

Calculate assessed value, given a property tax of $6,100 and 26 mills tax rate.

Question 66

Pete's Warehouse has a market value of $5,000,000. The property in Pete's area is assessed at 40% of the market value. The tax rate is $105.10 per $1,000 of assessed valuation. What is Pete's property tax?

Question 67

Calculate the assessed valuation, given an assessed rate of 75% and a market value of $110,000.

Question 68

Match the following terms with their definitions.

-Property tax

A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 69

Calculate amount of tax due:
$$\begin{array} { | l | l | l | } \hline \text { Tax Rate } & \text { Assessed Value } & \text { Tax Due } \\\hline \$ 12.75 \text { per } \$ 100 & \$ 14,500 & \text { A } \\\hline \$ 62.50 \text { per } \$ 1,000 & \$ 67,800 & \text { B } \\\hline 16 \text { Mills } & \$ 225,000 & \text { C } \\\hline\end{array}$$

Question 70

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?

Question 71

Match the following terms with their definitions.

-Sales tax

A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Question 72

Calculate the assessed valuation:
$$\begin{array} { | l | l | } \hline \text { Assessed Rate } & \text { Market Value } \\\hline 65 \% & \$ 118,000 \\\hline\end{array}$$

Question 73

French County needs $915,000 from property tax to meet its budget. The total value of assessed property in French is $140,000,000. What is the tax rate of French? Round to the nearest ten thousandth. Express that rate in mills.

Question 74

Total sales for Appliance Center were $205,000 for the week. These sales included a 6% sales tax. What were the actual sales?

Question 75

Calculate tax rate in decimal form (six decimal places):
$$\begin{array} { | l | l | } \hline\text { Total Assessed Value } & \text { Budget Required } \\\hline \$ 48,000,000 & \$ 895,000 \\\hline\end{array}$$

Question 76

Calculate (A)actual sales and (B)sales tax liability:
Total sales: $23,152.81 (includes a 5% tax.)

Question 77

Frank Smith pays a property tax of $2,200. The current tax rate is 48 mills. What is Smith's assessed value? (Round to the nearest dollar.)

Question 78

Calculate the total purchase price, given:
$$\begin{array} { | l | l | } \hline \text { Retail Price } & \$ 40,000 \\\hline \text { Sales Tax } & 6 \% \\\hline \text { Excise Tax } & 8 \% \\\hline\end{array}$$

Question 79

Ralph's home is assessed at $80,000. The tax rate is 16.52 mills. What is the actual amount of tax on Ralph's home?

Question 80

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?