Question 1

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?

Accepted Answer

$1,250.99 / 1.06 = $1,180.18; $1,250.99 - $1,180.18 = $70.81.

Question 2

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 actual amount of tax on Russell's home, we need to multiply the assessed value by the tax rate and convert mills to dollars.

$140,000 x 0.0118 = $1,652

Question 3

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 4

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 determine the assessed value of the warehouse. Since the property in the area is assessed at 40% of the commercial value, the assessed value of the warehouse would be:

Assessed value = 40% x $5,000,000
Assessed value = $2,000,000

Next, we can calculate the property tax using the tax rate of $105.10 per $1,000 assessed value:

Property tax = ($2,000,000 ÷ 1,000) x $105.10
Property tax = $210,200

Therefore, Best Buy pays $210,200 in property tax.

Question 5

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 6

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

The answer of Becky bought a new Apple computer for...

Question 7

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: $8,000 x 0.05 = $400.00
2) Excise tax: $8,000 x 0.07 = $560.00
3) Insurance charge: $15.00
4) Total purchase price: $8,000 + $400 + $560 + $15 = $8,975.00

Question 8

Calculate amount of tax due:
  
A. $1,957.50;
B. $6,013.86;
C. $4,725

Accepted Answer

The answer of Calculate amount of tax due:
  
A....

Question 9

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 is calculated by multiplying the market value by the assessment rate: 
$190,000 x 0.45 = $85,500. Therefore, the correct answer is C.

Question 10

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 11

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

The answer of Mike's condo has a market value of...

Question 12

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

Accepted Answer

The answer of Calculate the tax rate in decimal form...

Question 13

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

The answer of Bill Shass pays a property tax of...

Question 14

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

Accepted Answer

The answer of French County needs $915,000 from property tax...

Question 15

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

The assessed value is calculated by multiplying the market value by the assessment rate: $180,000 * 0.35 = $63,000.

Question 16

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

The sales tax is 6% of $70, which is $4.20.
The excise tax is 10% of the total price ($70 + $4.20), which is $7.42.
So the total amount Bill paid is: $70 + $4.20 + $7.42 = $81.20.

Question 17

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:

Accepted Answer

The answer of Moe Blunt came into Jan's Hardware Store...

Question 18

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 tax rate is calculated by dividing the needed tax revenue by the total assessed property value: $915,000 / $14,000,000 = 0.065357, which rounds to 0.065.

Question 19

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

Accepted Answer

The answer of Calculate (A) actual sales and (B) sales...

Question 20

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.

Quiz 19: Sales, Excise, and Property Taxes