Question 1

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

Accepted Answer

The assessed value can be found by multiplying the market value by the assessment rate as follows:
Assessed Value = $190,000 * 0.45
Assessed Value = $85,500

Question 2

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)?

Accepted Answer

The answer of The municipality of Waterloo needs $915,000 from...

Question 3

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:

Accepted Answer

To find the assessed valuation, we can use the formula:

Assessed Valuation = (Property Tax / Tax Rate) * 1,000

Plugging in the given values, we get:

Assessed Valuation = (5,800 / 48) * 1,000
Assessed Valuation = 120,833.33

Rounding this to the nearest dollar gives us:

Assessed Valuation = $120,833

Therefore, the best choice is D.

Question 4

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:

Accepted Answer

To calculate the tax due, multiply the assessed value ($109,000) by the tax rate per $1,000 of assessed valuation ($86.95). This equals $9,477.55.

Question 5

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?

Accepted Answer

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Question 6

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:

Accepted Answer

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Question 7

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?

Accepted Answer

First, we need to find the assessed value of the warehouse:
Assessed value = 40% of market value = 0.4 x $5,000,000 = $2,000,000

Next, we can calculate the property tax:
Property tax = (assessed value / 1000) x tax rate
Property tax = ($2,000,000 / 1000) x $105.10
Property tax = $210,200

Therefore, Best Buy pays $210,200 in property tax. The answer is B.

Question 8

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:

Accepted Answer

The answer of Judy Ring purchased a watch with a...

Question 9

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

Let's assume the actual cost of the car before tax is x.
Then, we know that the total cost (including tax) is $18,200. 
Since the tax is 5%, we can set up the following equation:

x + 0.05x = 18200

Simplifying this, we get:

1.05x = 18200

Dividing both sides by 1.05:

x = 17333.33

Rounding to the nearest dollar, we get $17,333 as the answer. Therefore, the best choice is B.

Question 10

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:

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Question 11

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?

Accepted Answer

1. Sales tax = 5% of $8,000 = $400
2. Excise tax = 7% of $8,000 = $560
3. Insurance charge = $15
4. Total cost = $8,000 + $400 + $560 + $15 = $8,975. Therefore, the answer is C.

Question 12

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?

Accepted Answer

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Question 13

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):

Accepted Answer

The answer of The county of Blue needs $800,000 from...

Question 14

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:

Accepted Answer

To find the amount of tax on Russell's home, we need to first convert the mill rate to a decimal:
11.8 mills = 0.0118
Next, we can calculate the tax amount:
$140,000 × 0.0118 = $1,652
Therefore, the actual amount of tax on Russell's home is $1,652, which corresponds to choice B.

Question 15

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:

Accepted Answer

First, we need to calculate the sales tax: 
6% of $70 = $4.20

Next, we need to calculate the excise tax:
10% of ($70 + $4.20) = $7.42

Finally, we add the cost of the fishing rod ($70), the sales tax ($4.20), and the excise tax ($7.42) to get the total amount Bill paid:
$70 + $4.20 + $7.42 = $81.20

Therefore, the correct answer is choice C, $81.20.

Quiz 19: Sales Excise and Property Taxes