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by fruti_yum » Fri Sep 04, 2009 4:29 pm
The total market value of real estate in Altonville has steadily declined over the past four
years. This decline has meant that the overall figure on which the city's property tax is
based-the assessed value of that real estate-has also declined. Moreover, the
percentage of assessed value that was paid as property taxes to the city did not change
during this period.
The information above most strongly supports which of the following?
A. Money collected from property taxes provided most of Altonville's revenue during
the past four years.
B. The percentage of Altonville's overall revenue that was collected from property
taxes did not change over the past four years.
C. Altonville officials had proposed raising property tax rates during the past four
years but never did so because of strong opposition from property owners.
D. The total amount of revenue that Altonville has collected from property taxes has
declined over the past four years.
E. During the past four years, Altonville officials also did not increase tax rates on
other sources of revenue such as retail sales or business profits.

OA after some discussion! I need help understanding the passage. Not sure if i'm undderstanding it right
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Source: — Critical Reasoning |
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by heshamelaziry » Fri Sep 04, 2009 5:45 pm
My choice is D. Strong and Best of for options.

The asesed value tax is determined as a percentage of property's value. If the property value goes up, the percentage collected from that value will be more than if the house value goes down. Also, the city did not change the tax percentage even though the houses value went down.

Conclusion: Revenue for the city has declined during the past 4 years
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by gmatmachoman » Fri Sep 04, 2009 10:35 pm
[spoiler]"IMO D"[/spoiler]
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by vivek.kapoor83 » Sat Sep 05, 2009 1:25 am
IMO also D...others are irrelavent...
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by srivas » Sat Sep 05, 2009 8:42 am
percentage of assessed value that was paid as property taxes to the city did not change

form the above setnece my answer is B
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by heshamelaziry » Sat Sep 05, 2009 1:07 pm
srivas wrote:percentage of assessed value that was paid as property taxes to the city did not change

form the above setnece my answer is B
Why D is wrong ? B says that the percentage of, overall city's revenue, from property tax has not changed .

The percentage charged has not changed but the percentage contribution to revenue has changed.
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by mehravikas » Tue Sep 08, 2009 1:37 pm
It should be 'D' as the argument points that the value of the property has declined but the percentage of the assessed value has not.

That means, the overall revenue has declined.
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by Domnu » Tue Sep 08, 2009 8:44 pm
The answer isn't be B... remember that we shouldn't confuse percentages with actual values. D fits perfectly.
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Re: city a

by fruti_yum » Fri Sep 11, 2009 10:45 am
fruti_yum wrote:The total market value of real estate in Altonville has steadily declined over the past four
years. This decline has meant that the overall figure on which the city's property tax is
based-the assessed value of that real estate-has also declined. Moreover, the
percentage of assessed value that was paid as property taxes to the city did not change
during this period.
The information above most strongly supports which of the following?
A. Money collected from property taxes provided most of Altonville's revenue during
the past four years.
B. The percentage of Altonville's overall revenue that was collected from property
taxes did not change over the past four years.
C. Altonville officials had proposed raising property tax rates during the past four
years but never did so because of strong opposition from property owners.
D. The total amount of revenue that Altonville has collected from property taxes has
declined over the past four years.
E. During the past four years, Altonville officials also did not increase tax rates on
other sources of revenue such as retail sales or business profits.

OA is D
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