Deck 8: Sales, Excise, and Property Taxes

Question 1

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

Answer 1

True

Question 2

Excise tax is only on goods or services that are not luxury items.

Answer 2

False

Question 3

Sales tax usually is not taken on edible foods.

Answer 3

True

Question 4

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

Question 5

All charitable organizations pay a sales tax.

Question 6

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

Question 7

The tax rate per dollar is never rounded up.

Question 8

Sales tax is collected by wholesalers.

Question 9

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

Question 10

Sales tax is taken on shipping charges.

Question 11

Tax rates may be expressed in more than one way.

Question 12

Excise tax and sales tax are really the same tax.

Question 13

Sales tax is never rounded to the nearest cent.

Question 14

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

Question 15

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

Question 16

Sales tax is required in all states.

Question 17

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

Question 18

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

Question 19

Assess value equals assessment rate * market value.

Question 20

A mill is 1/10 of a cent.

Question 21

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

Question 22

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 23

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 24

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) $1,508
B) $150,089
C) $15,089
D) $5,089
E) None of these

Question 25

Excise tax is not applied to:

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

Question 26

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 27

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

Question 28

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 29

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 30

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 31

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 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

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 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

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 36

Personal property items do not include:

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

Question 37

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) $08,000
C) $21,000
D) $22,000
E) None of these

Question 38

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 39

Usually assessed value is rounded to the:

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

Question 40

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 41

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 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

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 44

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 45

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 46

In the community of Borg, the market value of a home is $080,000. 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 47

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

Question 48

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

Question 49

Complete (express answers to nearest hundredth):
A. _______________
B. _______________
C. _______________
D. _______________

Question 50

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 51

Calculate the total purchase price:
Given:

Question 52

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 53

Carol Reeve bought a new fur coat for $8,000. She must pay a 5% sales tax and a 7% excise tax. The furrier is shipping the coat, so Carol must also pay a $15 shipping charge. What is the total purchase price of the coat?

Question 54

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 55

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

Question 56

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 57

Calculate assessed value:
Given: property tax $6,100; 26 mills tax rate

Question 58

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 59

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) $08,110
E) None of these

Question 60

Calculate the assessed valuation:

Question 61

Calculate the assessed valuation:

Question 62

Calculate the assessed valuation:

Question 63

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.)

Question 64

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?

Question 65

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

Question 66

The home of Edward Sloan is assessed at $72,000. The tax rate is $148.50 per $1,000 of assessed valuation. Can you calculate Edward's tax that is due?

Question 67

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. Assuming that Slide's sales did not include sales tax, what would have been Alfred's tax liability?

Question 68

The market value of a home in San Francisco is $200,000. Find the assessed value if the assessment rate is 64%.

Question 69

Complete (express answers to nearest hundredth):

Question 70

Complete (express answers to nearest hundredth):

Question 71

John Rich purchased a ring for a retail price of $13,000. There is a sales tax of 7% along with a 10% excise tax. What is the total cost to John?

Question 72

Calculate amount of tax due:

Question 73

The home of Tom Burke is assessed at $60,000. The tax rate is 15.18 mills. What is the actual amount of tax on Tom's home?

Question 74

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 75

In the community of Rosen, the market value of a home is $90,000. Find the assessed value if the assessment rate is 71%.

Question 76

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

Question 77

Rick Presser's home has a market value of $260,000. His assessed rate is 45%. What is the assessed value?

Question 78

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.

Question 79

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 80

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.)