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# Guess which one is right Property taxes are typically set at

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Joined: 19 Mar 2007
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Guess which one is right Property taxes are typically set at [#permalink]  04 Apr 2007, 05:32
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Guess which one is right

Property taxes are typically set at a flat rate per $1,000 of officially assessed value. Reassessments should be frequent in order to remove distortions that arise when property values change at differential rates. In practice, however, reassessments typically occur when they benefit the government â€“ that is, when their effect is to increase total tax revenue. If the statements above are true, which of the following describes a situation in which a reassessment should occur but is unlikely to do so? (A) Property values have risen sharply and uniformly. (B) Property values have all risen â€“ some very sharply, some less so. (C) Property values have for the most part risen sharply yet some have dropped slightly. (D) Property values have for the most part dropped significantly; yet some have risen slightly. (E) Property values have dropped significantly and uniformly. VP Joined: 06 Feb 2007 Posts: 1023 Followers: 20 Kudos [?]: 142 [0], given: 0 [#permalink] 04 Apr 2007, 05:45 D? Senior Manager Joined: 11 Feb 2007 Posts: 356 Followers: 1 Kudos [?]: 58 [0], given: 0 [#permalink] 04 Apr 2007, 06:01 Another D here. A) Property values have risen sharply and uniformly. - risen, so revenue increase & uniformly so no real adjustment needed (B) Property values have all risen â€“ some very sharply, some less so. - all risen, so revenue increase (C) Property values have for the most part risen sharply yet some have dropped slightly. - most part risen, so revenue increase (D) Property values have for the most part dropped significantly; yet some have risen slightly. - dropped, not uniformly, so adjustment needed but since it won't increase the revenue (it'd decrease it!), the gov't would not reassess. (E) Property values have dropped significantly and uniformly. - dropped, so revenue decrease & uniformly so no adjustment needed. Manager Joined: 26 Feb 2007 Posts: 115 Followers: 1 Kudos [?]: 1 [0], given: 0 [#permalink] 04 Apr 2007, 06:49 D. Director Joined: 19 Mar 2007 Posts: 524 Followers: 3 Kudos [?]: 14 [0], given: 0 [#permalink] 04 Apr 2007, 07:10 D. That's right. The key to this CR must be the phrase "to remove distortions that arise when property values change at differential rates". As ricokevin mentioned, property values should lack that uniformity ... Manager Joined: 20 Nov 2006 Posts: 215 Followers: 1 Kudos [?]: 6 [0], given: 0 [#permalink] 04 Apr 2007, 09:56 Another D here. Director Joined: 29 Jul 2006 Posts: 877 Followers: 3 Kudos [?]: 34 [0], given: 0 [#permalink] 05 Apr 2007, 04:36 B,C,D satisfy the first requirement. out of these D...only this satisfies the second requirement Senior Manager Joined: 04 Mar 2007 Posts: 442 Followers: 1 Kudos [?]: 20 [0], given: 0 [#permalink] 05 Apr 2007, 10:00 Sorry, I didn't get it. Could somebody explain more why not E? Why not uniformly? Intern Joined: 21 Mar 2007 Posts: 25 Followers: 0 Kudos [?]: 0 [0], given: 0 [#permalink] 15 Apr 2007, 18:15 I also have problem understand D Why not E? If property values dropped significantly and uniformedly, shouldn't reassessment occur to remove distortion of price while the gov't resist a drop in revenue? VP Joined: 21 Mar 2006 Posts: 1135 Location: Bangalore Followers: 2 Kudos [?]: 31 [0], given: 0 [#permalink] 15 Apr 2007, 18:46 cooldar wrote: I also have problem understand D Why not E? If property values dropped significantly and uniformedly, shouldn't reassessment occur to remove distortion of price while the gov't resist a drop in revenue? Choice E: Property values have dropped significantly and uniformly. Excerpt from passage : Reassessments should be frequent in order to remove distortions that arise when property values change at differential rates VP Joined: 03 Apr 2007 Posts: 1376 Followers: 3 Kudos [?]: 328 [0], given: 10 Re: CR - Property taxes and reassessments [#permalink] 16 Apr 2007, 17:20 nick_sun wrote: Guess which one is right Property taxes are typically set at a flat rate per$ 1,000 of officially assessed value. Reassessments should be frequent in order to remove distortions that arise when property values change at differential rates. In practice, however, reassessments typically occur when they benefit the government â€“ that is, when their effect is to increase total tax revenue.

If the statements above are true, which of the following describes a situation in which a reassessment should occur but is unlikely to do so?

(A) Property values have risen sharply and uniformly.
(B) Property values have all risen â€“ some very sharply, some less so.
(C) Property values have for the most part risen sharply yet some have dropped slightly.
(D) Property values have for the most part dropped significantly; yet some have risen slightly.
(E) Property values have dropped significantly and uniformly.

D
Re: CR - Property taxes and reassessments   [#permalink] 16 Apr 2007, 17:20
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