Deck 19: Sales Excise and Property Taxes

Question 1

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

Answer 1

True

Question 2

Sales tax usually is not taken on edible foods.

Answer 2

True

Question 3

Sales tax is never rounded to the nearest cent.

Answer 3

False

Question 4

Sales tax is collected by wholesalers.

Question 5

Tax rates may be expressed in more than one way.

Question 6

Sales tax is required in all states.

Question 7

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

Question 8

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

Question 9

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

Question 10

The tax rate per dollar is never rounded up.

Question 11

Excise tax and sales tax are really the same tax.

Question 12

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

Question 13

Sales tax is taken on shipping charges.

Question 14

To represent the number of mills as a tax rate per dollar, the tax rate is multiplied by .001.

Question 15

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

Question 16

A mill is 1/10 of a cent.

Question 17

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

Question 18

All charitable organizations pay a sales tax.

Question 19

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

Question 20

Assess value equals assessment rate × market value.

Question 21

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 22

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 23

The tax rate of $.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 24

The tax rate of $.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 25

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

Question 26

Excise tax is not applied to:

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

Question 27

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 28

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 29

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

Question 30

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 31

Given a tax rate of $.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

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 33

Personal property items do not include:

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

Question 34

Given a tax rate of $.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 35

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 36

Usually assessed value is rounded to the:

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

Question 37

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 38

A tax rate of $.0711 in decimal expressed per $1,000 of assessed valuation is equal to:

A)$71.1
B)$7.11
C)$.0711
D)$.00711
E)None of these

Question 39

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 40

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 41

In the community of Borg, 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 42

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)?

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

Question 43

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 44

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 45

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?

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

Question 46

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 47

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 48

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

Question 49

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 50

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 51

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 52

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 53

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 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

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