Question 1

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

Accepted Answer

The actual selling price of the computer is $1,136.79. This is calculated by dividing the purchase price by 1.06, which is the sales tax rate plus 1.

Question 2

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

Accepted Answer

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

Then, we need to calculate the excise tax: 
10% of $70 = $7.00

Now we can add up the total cost: 
$70 + $4.20 + $7.00 = $81.20

Therefore, the total amount Bill paid for the rod is $81.20. So, the correct answer is C.

Question 3

If the market value of an average home is $180,000, and 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

Accepted Answer

The assessed value is calculated by multiplying the market value by the assessment rate: $180,000 * 35% = $63,000.

Question 4

Match the following terms with their definitions.
-Market value
A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Accepted Answer

Market value refers to the current value of an asset or company based on the prevailing market conditions. This term is often used to describe the price at which an asset or service can be bought or sold in a competitive marketplace.

Question 5

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

Accepted Answer

The assessed value can be calculated as: 
Assessed value = Market value * Assessment rate
Assessed value = $190,000 * 0.45 = $85,500. Therefore, the correct choice is C.

Question 6

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)$9,300
B)$8,936
C)$9,280
D)$8,496
E)None of these

Accepted Answer

The total purchase price is the retail price plus the sales tax, excise tax, and shipping charge. The sales tax is 6% of the retail price, which is $8,000 x 0.06 = $480. The excise tax is 10% of the retail price, which is $8,000 x 0.10 = $800. The total purchase price is $8,000 + $480 + $800 + $20 = $9,300.

Question 7

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

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 8

Match the following terms with their definitions.
-Mills
A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Accepted Answer

Mills are a unit of currency used in some contexts, specifically in property tax calculations, equal to 1/10 of a cent.

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

To find the tax rate in mills, first calculate the tax rate as a decimal: $800,000 / $140,000,000 = 0.0057142857. Round this to the nearest hundred thousandth: 0.00571. Convert to mills by multiplying by 1000: 0.00571 * 1000 = 5.71 mills.

Question 12

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

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 13

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

Accepted Answer

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

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:
A)$1,562
B)$1,652
C)$1,462
D)$1,362
E)None of these

Accepted Answer

To find the amount of tax on Russell's home, we need to multiply the assessed value of $140,000 by the tax rate of 11.8 mills, and then convert to dollars.

$140,000 x 0.0118 = $1,652

Therefore, the actual amount of tax on Russell's home is $1,652.

The correct choice is B.

Question 15

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

Accepted Answer

The sales tax is 5% of $8,000 which is $400. 
The excise tax is 7% of $8,000 which is $560. 
Adding the cost of the coat, sales tax, and excise tax, we get: 
$8,000 + $400 + $560 = $8,960. 
Then adding the $15 insurance charge gives a total purchase price of $8,975, so the correct answer is choice C.

Question 16

Match the following terms with their definitions.
-Tax rate per dollar
A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Accepted Answer

The tax rate per dollar is calculated by dividing the budget needed by the total assessed value.

Question 17

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

Accepted Answer

First, we need to find the assessed value of the property. The commercial value is $5,000,000, and the assessed value is 40% of that, so:
Assessed value = 0.4 * $5,000,000 = $2,000,000
Next, we can calculate the property tax:
Property tax = (Assessed value / $1,000) * Tax rate
Property tax = ($2,000,000 / $1,000) * $105.10
Property tax = $210,200
Therefore, the answer is B.

Question 18

To meet budget, $915,000 from property tax is needed. The total value of assessed property is $14,000,000. What is the tax rate per dollar (round to nearest thousandths)?
A)0.071
B)0.07
C)0.0655
D)0.066
E)None of these

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 0.066.

Question 19

Match the following terms with their definitions.
-Excise tax
A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Accepted Answer

The answer of Match the following terms with their definitions.
-Excise...

Question 20

Match the following terms with their definitions.
-Assessed valuation
A)Tax to raise revenue for cities, schools, etc.
B)A tax on consumers for certain merchandise or services
C)Value of property to calculate property taxes
D)1/10 of a cent
E)Current value today
F)Budget needed divided by total assessed value
G)Tax on luxury items

Accepted Answer

Assessed valuation refers to the value assigned to property by a public tax assessor for the purposes of taxation, which is used to calculate property taxes.

Quiz 19: Sales, Excise, and Property Taxes

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?

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:

If the market value of an average home is $180,000, and the assessment rate is 35% what is the assessed value?

Match the following terms with their definitions. -Market value

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

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:

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:

Match the following terms with their definitions. -Mills

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:

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:

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) :

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:

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:

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:

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?

Match the following terms with their definitions. -Tax rate per dollar

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?

To meet budget, $915,000 from property tax is needed. The total value of assessed property is $14,000,000. What is the tax rate per dollar (round to nearest thousandths) ?

Match the following terms with their definitions. -Excise tax

Match the following terms with their definitions. -Assessed valuation