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The total market value of real estate in Altonville has

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The total market value of real estate in Altonville has [#permalink] New post 10 Nov 2011, 14:33
00:00
A
B
C
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E

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Question Stats:

43% (02:05) correct 56% (02:03) wrong based on 16 sessions
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. The percentage of assessed value that was paid as property taxes to the city, however, did not change from year to year during this period. The information above most strongly supports which of the following?

A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years.
B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.


What's the reasoning behind C?
[Reveal] Spoiler: OA

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Re: Real Estate in Altonville [#permalink] New post 10 Nov 2011, 21:38
We know that the assessed value of that real estate-has also declined, but the percentage of assessed value that was paid as property taxes to the city did not change.
We can conclude that total amount of revenue collected from properties has declined.

Which option did you choose?
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Re: Real Estate in Altonville [#permalink] New post 10 Nov 2011, 23:56
blink005 wrote:
We know that the assessed value of that real estate-has also declined, but the percentage of assessed value that was paid as property taxes to the city did not change.
We can conclude that total amount of revenue collected from properties has declined.

Which option did you choose?



You are right.

Initially i choose B. Eliminated C altogether thinking it is comparing last year with that of the 4 year period.

But ultimately C wins.
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Re: Real Estate in Altonville [#permalink] New post 11 Nov 2011, 00:57
Can you please explain why C and not A?
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Re: Real Estate in Altonville [#permalink] New post 11 Nov 2011, 19:59
why not A?

Can anyone justify plz?
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Re: Real Estate in Altonville [#permalink] New post 13 Nov 2011, 00:04
I chose C. I met this question once. I can explain simply that value of real estate decrease, tax remain. Decrease value x remain tax = revenue from tax of real estate. Reduce
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Re: Real Estate in Altonville   [#permalink] 13 Nov 2011, 00:04
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