Deck 19: Sales, Excise, and Property Taxes

Question 1

All charitable organizations pay a sales tax.

Answer 1

False

Question 2

Excise tax and sales tax are really the same tax.

Answer 2

False

Question 3

A mill is 1/10 of a cent.

Answer 3

True

Question 4

Tax rates may be expressed in more than one way.

Question 5

Sales tax is taken on shipping charges.

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

Assessed value equals assessment rate × market value.

Question 11

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

Question 12

Sales tax is collected by wholesalers.

Question 13

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

Question 14

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

Question 15

Sales tax is required in all states.

Question 16

Sales tax usually is not taken on edible foods.

Question 17

The tax rate per dollar is never rounded up.

Question 18

Sales tax is never rounded to the nearest cent.

Question 19

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

Question 20

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

Question 21

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 22

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

Question 23

Usually assessed value is rounded to the:

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

Question 24

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 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

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 27

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 28

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 29

Personal property items do not include:

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

Question 30

Excise tax is not applied to:

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

Question 31

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

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

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 34

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 35

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 36

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 37

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 38

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 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

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 41

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 42

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 43

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 44

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 45

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 46

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 47

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 48

Calculate amount of tax due:

A. $1,957.50;
B. $6,013.86;
C. $4,725

Question 49

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 50

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 51

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 52

Calculate the tax rate in decimal form (six decimal places):

Question 53

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 54

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.
6.5 mills

Question 55

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 56

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 57

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 58

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 59

Calculate (A) actual sales and (B) sales tax liability. Total sales: $1,200.15 (includes a 5% tax.)
A. $1,143;
B. $57.15

Question 60

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 61

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, and that included the 4% sales tax. Alfred would like a breakdown of actual sales as well as the amount of sales tax owed to the state. Can you help Alfred?

Question 62

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.)
6.07 mills

Question 63

Calculate (A) actual sales and (B) sales tax liability.
Total sales: $1,110.50 (includes a 5% tax)
A. $1,057.62;
B. $52.88

Question 64

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

Question 65

Bonnie Flow pays a property tax of $3,000. In her community, the tax rate is 58 mills. Can you calculate for Bonnie her assessed valuation? (Round to the nearest dollar.)
3000/.058 = $51,724

Question 66

Al's Garage has a market value of $425,000. The property in Al's area is assessed at 40% of the market value. The tax rate is $148.50 per $1,000 of assessed valuation. Find the tax for Al.