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Property taxes are typically set at a flat rate per $1,000 [#permalink] ### Show Tags 05 Nov 2012, 16:27 7 This post received KUDOS 12 This post was BOOKMARKED 00:00 Difficulty: 85% (hard) Question Stats: 47% (02:33) correct 53% (01:31) wrong based on 640 sessions ### HideShow timer Statistics 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—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?

Property values have risen sharply and uniformly.

Property values have all risen—some very sharply, some less so.

Property values have for the most part risen sharply; yet some have dropped slightly.

Property values have for the most part dropped significantly; yet some have risen slightly.

Property values have dropped significantly and uniformly.

I came across this question today at mba.com and even if I understood the logic behind I do not know how to list this CR

Try it. Thanks
[Reveal] Spoiler: OA

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Last edited by carcass on 06 Nov 2012, 00:39, edited 1 time in total.
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Re: Property taxes are typically set at a flat rate per $1,000 [#permalink] ### Show Tags 05 Nov 2012, 19:02 2 This post received KUDOS 1 This post was BOOKMARKED carcass wrote: 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—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?

Property values have risen sharply and uniformly.

Property values have all risen—some very sharply, some less so.

Property values have for the most part risen sharply; yet some have dropped slightly.

Property values have for the most part dropped significantly; yet some have risen slightly.

Property values have dropped significantly and uniformly.

I came across this question today at mba.com and even if I understood the logic behind I do not know how to list this CR

Try it. Thanks

"a situation in which a reassessment should occur but is unlikely to do so"

Reassessment should occur when property value changes at differential rates - A & E out
among B,C and D, only D provides a case where new taxes would be lower if reassessment is done. So it is highly unlikely that the reassesment would be done. (reassessments typically occur when they benefit the government).

Hence Ans D it is!
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05 Nov 2012, 23:19
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carcass wrote:
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—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? Property values have risen sharply and uniformly. Property values have all risen—some very sharply, some less so. Property values have for the most part risen sharply; yet some have dropped slightly. Property values have for the most part dropped significantly; yet some have risen slightly. Property values have dropped significantly and uniformly. I came across this question today at mba.com and even if I understood the logic behind I do not know how to list this CR Try it. Thanks You might have come across mimic questions. You are given a particular argument and you have to find another argument which uses the same logic or you are given a situation and you have to find examples of that situation etc. This is a type of mimic question. Understand the argument: Property taxes are set at a flat rate per$1,000 of officially assessed value.
When property values change at differential rates, reassessment should happen.
In practice, reassessments occur when they increase total tax revenue.

When will total tax revenue increase? When the total assessed value increases.
Reassessments are needed when property values change at differential rates (rates of some properties go up, for some go down or for some go up steeply and for some go up slightly). But they will probably happen only when overall, the reassessed value will be higher than previous value (and when values change at differential rate)

In part D, the values have changed at differential rates so reassessment should happen. But the reassessed value will be lower than the current value so it will probably not happen.

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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Moderator Joined: 01 Sep 2010 Posts: 3092 Followers: 786 Kudos [?]: 6546 [0], given: 1012 Re: Property taxes are typically set at a flat rate per$1,000 [#permalink]

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06 Nov 2012, 00:50
Well Boys and Girls (Karishma)

I'm not completely sure about the question resemble mimic the argument.

Mimic are soooo rare and unique (in OG 12th and 13th I do not remember it at all); moreover, they always say the word "mimic"

This question seems something like the role of the argument (bold face) without a bold or inference. A hybrid..........mah weird; it is one of those things that gmat does to make you completely out of balance or nervous. Even though it was not so difficult.

Thanks
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06 Nov 2012, 01:07
I remember seeing a question type as "Provide an example" somewhere. This question seem sto suit that structure.

Kudos Please... If my post helped.
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22 Jan 2014, 09:09
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WE HAVE TO LOOK FOR A SCENARIO WHERE SITUATION DEMANDS REASSESSMENT DUE TO PROPERTY VALUE CHANGES AT DIFFERENTIAL RATES YET GOVERNMENT NOT IMPLEMENTING IT AS IT DOES NOT BENEFIT BUT RATHER LOSES.....

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?

Property values have risen sharply and uniformly.NO DIFFERENTIAL FACTOR....HENCE NOT APPLICABLE

Property values have all risen—some very sharply, some less so. GOVERNMENT BENEFITTING AND WILL GO FOR REASSESSMENT

Property values have for the most part risen sharply; yet some have dropped slightly.DIFFERENTIAL RATES ARE THERE BUT GOVERNMENT BENEFITTING AND WILL GO FOR REASSESSMENT

Property values have for the most part dropped significantly; yet some have risen slightly.....DIFFERENTIAL RATES APPLICABLE BUT GOVERNMENT WILL NOT GO FOR REASSESSMENT AS IT WILL BE AT LOSS...

Property values have dropped significantly and uniformly......NO DIFFERENTIAL FACTOR....HENCE NOT APPLICABLE

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26 Dec 2014, 00:09
carcass wrote:
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—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? Property values have risen sharply and uniformly. Property values have all risen—some very sharply, some less so. Property values have for the most part risen sharply; yet some have dropped slightly. Property values have for the most part dropped significantly; yet some have risen slightly. Property values have dropped significantly and uniformly. I came across this question today at mba.com and even if I understood the logic behind I do not know how to list this CR Try it. Thanks conclusion : rates when increase benefit Govt.- > Govt. then reassessed values OA: D - rated did not increase -> so no reassessment, but slight increase shows Govt. shd have reassessed _________________ IF IT IS TO BE , IT IS UP TO ME Intern Joined: 12 Jul 2015 Posts: 43 Location: Singapore GMAT 1: 730 Q50 V39 WE: Operations (Retail) Followers: 0 Kudos [?]: 0 [0], given: 36 Property taxes are typically set at a flat rate per$1,000 [#permalink]

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05 Oct 2015, 21:47
VeritasPrepKarishma wrote:
You might have come across mimic questions. You are given a particular argument and you have to find another argument which uses the same logic or you are given a situation and you have to find examples of that situation etc. This is a type of mimic question.
Understand the argument:
Property taxes are set at a flat rate per $1,000 of officially assessed value. When property values change at differential rates, reassessment should happen. In practice, reassessments occur when they increase total tax revenue. When will total tax revenue increase? When the total assessed value increases. Reassessments are needed when property values change at differential rates (rates of some properties go up, for some go down or for some go up steeply and for some go up slightly). But they will probably happen only when overall, the reassessed value will be higher than previous value (and when values change at differential rate) In part D, the values have changed at differential rates so reassessment should happen. But the reassessed value will be lower than the current value so it will probably not happen. Answer D Karishma I really don't get understand this question at all. In option B, if ALL property values have gone up, why would the government even want to do a re-assessment? Their tax revenues will have all increased! Some help please? Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7125 Location: Pune, India Followers: 2138 Kudos [?]: 13691 [0], given: 222 Re: Property taxes are typically set at a flat rate per$1,000 [#permalink]

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05 Oct 2015, 22:51
SamuelWitwicky wrote:
VeritasPrepKarishma wrote:
You might have come across mimic questions. You are given a particular argument and you have to find another argument which uses the same logic or you are given a situation and you have to find examples of that situation etc. This is a type of mimic question.
Understand the argument:
Property taxes are set at a flat rate per $1,000 of officially assessed value. When property values change at differential rates, reassessment should happen. In practice, reassessments occur when they increase total tax revenue. When will total tax revenue increase? When the total assessed value increases. Reassessments are needed when property values change at differential rates (rates of some properties go up, for some go down or for some go up steeply and for some go up slightly). But they will probably happen only when overall, the reassessed value will be higher than previous value (and when values change at differential rate) In part D, the values have changed at differential rates so reassessment should happen. But the reassessed value will be lower than the current value so it will probably not happen. Answer D Karishma I really don't get understand this question at all. In option B, if ALL property values have gone up, why would the government even want to do a re-assessment? Their tax revenues will have all increased! Some help please? There are two different property values - market value and appraised value Market value is what changes every day and with every deal - e.g. it could be considered the last transaction value of a fair negotiation not committed under duress. Or it could be the average of last 3 transactions or some such formula etc. It is not fixed. Property tax taken by the govt cannot be calculated using market value because of the huge short term fluctuations. They use assessed value of a property for a certain period of time, say 2 yrs. They can reassess after 2 yrs and then use that as a base. Or they can choose to reassess when they feel that the market price has moved up/down for the long term etc. The argument tells you how the govt decides to reassess. The property tax will increase if the reassessed value is higher than previous value. An increase in market value does not increase property tax. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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06 Oct 2015, 18:55
carcass wrote:
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—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? Property values have risen sharply and uniformly. Property values have all risen—some very sharply, some less so. Property values have for the most part risen sharply; yet some have dropped slightly. Property values have for the most part dropped significantly; yet some have risen slightly. Property values have dropped significantly and uniformly. I came across this question today at mba.com and even if I understood the logic behind I do not know how to list this CR Try it. Thanks Hi carcass Can you please explain how D is better than E, Because if all the property values have dropped then also government is not likely to do the assessment. _________________ ----------------------------------------- Consider Cudos if you like this post. ----------------------------------------- Intern Joined: 12 Jul 2015 Posts: 43 Location: Singapore GMAT 1: 730 Q50 V39 WE: Operations (Retail) Followers: 0 Kudos [?]: 0 [0], given: 36 Re: Property taxes are typically set at a flat rate per$1,000 [#permalink]

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06 Oct 2015, 19:19
dav90 wrote:
carcass wrote:
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—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? Property values have risen sharply and uniformly. Property values have all risen—some very sharply, some less so. Property values have for the most part risen sharply; yet some have dropped slightly. Property values have for the most part dropped significantly; yet some have risen slightly. Property values have dropped significantly and uniformly. I came across this question today at mba.com and even if I understood the logic behind I do not know how to list this CR Try it. Thanks Hi carcass Can you please explain how D is better than E, Because if all the property values have dropped then also government is not likely to do the assessment. Karishma from Veritas actually explained it earlier. You should read the post entries before asking the same question. She explained in detail the meaning of "property values change at differential rates" In summary, reassessments SHOULD occur WHEN property values change at DIFFERENT rates = some decrease by a lot while others decrease/increase by a little = NOT uniform The problem with E is that the prices dropped uniformly. That's not "differential rates" and therefore reassessment is NOT needed, which does not fulfil the question stem which asks for a scenario in which a reassessment is needed. Manager Joined: 30 Jul 2014 Posts: 59 GMAT 1: 560 Q50 V16 GPA: 3.72 Followers: 0 Kudos [?]: 7 [0], given: 58 Re: Property taxes are typically set at a flat rate per$1,000 [#permalink]

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21 Jan 2016, 09:37
D. no other option is close enough to qualify for an answer.
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Re: Property taxes are typically set at a flat rate per $1,000 [#permalink] ### Show Tags 23 Jan 2016, 09:34 carcass wrote: 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—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?

Property values have risen sharply and uniformly.

Property values have all risen—some very sharply, some less so.

Property values have for the most part risen sharply; yet some have dropped slightly.

Property values have for the most part dropped significantly; yet some have risen slightly.

Property values have dropped significantly and uniformly.

I came across this question today at mba.com and even if I understood the logic behind I do not know how to list this CR

Try it. Thanks

Kind of tricky. But good question.

ABC are out because the question states it is unlikely to do so - that means total tax revenues would go down. That is the majority of the tax is down.

E does not satisfy that it 'reassessment should occur' because it has not risen at all.

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