Question 1

Sales tax is never rounded to the nearest cent.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following are examples of items excluded from excise tax?

Accepted Answer

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

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Calculate the assessed valuation:

Accepted Answer

$102,500
.

Question 5

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

A)  $278,400 
B)  $120,338 
C)  $278,004 
D)  $120,833 
E)  None of these 
A)  $278,400 
B)  $120,338 
C)  $278,004 
D)  $120,833 
E)  None of these

Question 6

Tax rates may be expressed in more than one way.

Accepted Answer

A) True 
 B)False

Question 7

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?

Accepted Answer

The answer of Carol Reeve bought a new fur coat...

Question 8

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.)

Accepted Answer

The answer of Bonnie Flow pays a property tax of...

Question 9

The tax rate per dollar in a town can be calculated by dividing the total assessed value into:

Accepted Answer

A)  Mills 
B)  Budget needed 
C)  Market value 
D)  Appraised value 
E)  None of these 
A)  Mills 
B)  Budget needed 
C)  Market value 
D)  Appraised value 
E)  None of these

Question 10

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.

Accepted Answer

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

Question 11

In the community of Borg, the market value of a home is $080,000. If the assessment rate is 45%, the assessed value is:

Accepted Answer

A)  $542,857 
B)  $292,308 
C)  $85,500 
D)  $85,505 
E)  None of these 
A)  $542,857 
B)  $292,308 
C)  $85,500 
D)  $85,505 
E)  None of these

Question 12

Personal property items do not include:

Accepted Answer

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

Question 13

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

Accepted Answer

The answer of Calculate the total purchase price:
Given: retail price...

Question 14

Sales tax usually is not taken on edible foods.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

.71 * $90,

Question 16

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

A)  $8,880 
B)  $8,936 
C)  $8,516 
D)  $8,496 
E)  None of these 
A)  $8,880 
B)  $8,936 
C)  $8,516 
D)  $8,496 
E)  None of these

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

A)  $17.55 
B)  $17.54 
C)  $17.56 
D)  $17.62 
E)  None of these 
A)  $17.55 
B)  $17.54 
C)  $17.56 
D)  $17.62 
E)  None of these

Question 18

Sales tax is taken on:

Accepted Answer

A)  Trade discounts 
B)  Cash discounts 
C)  Shipping charges 
D)  Selling price minus trade discount 
E)  None of these 
A)  Trade discounts 
B)  Cash discounts 
C)  Shipping charges 
D)  Selling price minus trade discount 
E)  None of these

Question 19

Complete (express answers to nearest hundredth):

Accepted Answer

A. 8.44%
B

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 8: Sales, Excise, and Property Taxes

Sales tax is never rounded to the nearest cent.

Which of the following are examples of items excluded from excise tax?

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

Calculate the assessed valuation:

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:

Tax rates may be expressed in more than one way.

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?

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.)

The tax rate per dollar in a town can be calculated by dividing the total assessed value into:

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.

In the community of Borg, the market value of a home is $080,000. If the assessment rate is 45%, the assessed value is:

Personal property items do not include:

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

Sales tax usually is not taken on edible foods.

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

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:

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:

Sales tax is taken on:

Complete (express answers to nearest hundredth):

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

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